Theresa May will hold a cabinet meeting today to discuss the possibility of a no-deal Brexit.
In his annual state of the union address in Strasbourg, European Commission president Jean-Claude Juncker hinted that the EU were unwilling to accept May’s Chequers proposal, which would see the UK remain in the single market.
“We respect the British decision to leave our union, even though we continue to regret it deeply,” he said.
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“But we also ask the British government to understand that someone who leaves the union cannot be in the same privileged position as a member state.
“If you leave the union, you are of course no longer part of our single market, and certainly not only in the parts of it you choose.”
The Chequers proposals is fiercely opposed by Brexiteer MPs such as Boris Johnson, David Davis and Jacob Rees-Mogg, who say it would leave the UK beholden to EU rules.
Securing a deal 'remains our priority'
Brexit Secretary Dominic Raab wrote in the Daily Telegraph that securing a good deal “remains our overriding priority”, but said “it will require our EU friends to match the ambition and pragmatism we have demonstrated.
“If that doesn’t happen, regrettable and unlikely as it may be, the UK will manage the challenges of “no deal” so that we make a success of Brexit.”
He also said the UK would not pay the financial settlement to the EU agreed in the Withdrawal Bill in the event of no deal.
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Last month, Raab made a speech outlining some of the government’s contingency plans for no deal.
Some 84 documents have been prepared on the matter, with 25 of them published in August.
Topics covered in those include potential issues for the food and pharmaceutical industries, while the second batch of 28 documents being released today will "range from protecting consumers from mobile phone roaming charges to upholding environmental standards", wrote Raab in the Telegraph.
He also said fears that supermarkets would run out of food were “nonsense”.
He resumes negotiations with Michel Barnier on Friday.