Britain 'heading for worst possible Brexit' over freedom of movement, warns Theresa May's former top aide

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Britain risks signing up to the worst possible Brexit deal, Theresa May's former chief of staff has warned as it emerges several Cabinet ministers want freedom of movement to effectively continue after Britain leaves the European Union.

Writing for the Telegraph, Nick Timothy tells the Prime Minister she must urgently harden her negotiating strategy, adding: "The time for playing nice and being exploited is over".

Mr Timothy, one of Mrs May's closest allies, says she has been "undermined" by Parliament and her own Cabinet and now risks being pushed into the worst possible outcome. 

He accuses Greg Clark, the Business Secretary, of making the case for free movement. He says Philip Hammond, the Chancellor, has "blocked meaningful no-deal planning".

"This is ridiculous, and it has to stop," Mr Timothy writes. "The EU showed last December – when the talks faltered over Northern Ireland – that they want a deal. But they want a deal on the best terms for them, and the very worst for Britain. As things stand, they might well succeed."

He adds: "There is little point complaining, but we should listen and our strategy should change... The time for sincere cooperation with a partner that does not want to sincerely cooperate is over: we must toughen up."

Mr Timothy's intervention comes just days ahead of a crucial Cabinet meeting at Chequers to finalise Britain's negotiating strategy. There are growing concerns among Brexit-supporting ministers that they are to be bounced into supporting a watered down version of leaving, which will see Britain tied to both the customs union and single market.

The Telegraph has learnt that free movement of workers could also effectively continue after Brexit under proposals due to be discussed by the Cabinet next week.

Senior Cabinet ministers fear plans to allow EU workers with a job unfettered access to the UK could be included as part of the Government's offer to Brussels, amid a realisation that time is running out to secure a Brexit deal. 

Nick Timothy, one of Mrs  May's closest allies
Nick Timothy, one of Mrs  May's closest allies Credit:  Eddie Mulholland

Mr Timothy, who stood down after last year's election, says that Sajid Javid, the Home Secretary, is "alone" in his determination to "put the EU on the back foot" amid suggestions he is resisting the scheme in its current form.

The issue is expected to come up at a crunch meeting in Chequers next week where Britain's position ahead of the next round of talks with the EU will be agreed. 

Ministers were told there are now just six weeks left to thrash out a deal before the October EU summit when everything must be agreed. 

But there is a growing row over whether the immigration proposal should be included in the Government's white paper and some pro-Brexit figures have called for it to be held back as a last ditch bargaining chip if the negotiations do not progress. 

British Prime Minister Theresa May and the EU Ambassador for the UK Tim Barrow 
Theresa May with the UK's EU ambassador Tim Barrow  Credit: Getty

One senior pro-Brexit source said: "Something like this cannot be included in the white paper, if we're going down that route it would mean total surrender. 

"It would mean the UK would not be able to fully control its own borders - exactly the opposite of what people voted for. It would never get past the voters". 

There have also been discussions about whether EU migrants or their potential employers should have to prove that no UK national could do the job before they are granted a visa. 

This tougher second option would be much closer to the current system for people wanting to come to the UK from countries outside of the EU, the Telegraph understands. 

It follows reports that the Home Secretary favours a post-Brexit immigration policy which would be the same for all migrants and not offer preferential treatment to those coming from the EU. 

A ministerial source said there have been "lot of discussions" about the immigration plan but that the details were not expected to be set out until later in the year. 

The UK's post-Brexit immigration policy won't be revealed in full until later this year after a committee of experts hand ministers a report on the impact of halting EU free movement. 

The Migration Advisory Committee is set to send its recommendations to the Home Office in September, after which Mr Javid and his team will publish their own plans for how immigration will work after the UK leaves. 

Whitehall sources said including the clause could help smooth talks and reach agreement faster on the future trading relationship, which is proving difficult to agree. 

Officials in Brussels have also reportedly been pushing for a similar guarantee as their red line in order to give ground on trade, sources told the Telegraph.

The White Paper, which is in its 8th draft and runs to well over 100 pages, has not yet been agreed and most ministers have not yet seen it.

One Eurosceptic minister said while some in the Cabinet would be "relatively comfortable" with the idea of free movement of labour, others want extra safeguards. 

It follows comments by Mr Clark earlier this month in which he said British businesses frequently call on him to ensure it is easy for them to move staff between countries and he had got the message "loud and clear". 

He added:  "I completely understand when companies say that they rely on efficient mobility as it currently stands, raising concerns that restricting people’s ability to travel at short notice would be as damaging to our economy as frictions and disruption at our borders."

A Government source said it was  "natural to expect some discussion about mobility as part of the White Paper process"  but denied a plan to give EU workers preferential treatment is included in the draft White Paper." 

A Department for Exiting the European Union source said: "If this proposal is being discussed, which I sincerely doubt, it's happening many miles away from anyone responsible for drafting the White Paper or taking decisions related to it." 

They added the suggestion a policy to favour EU workers could be included was "nonsense". 

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