Cross-party Brexit talks focusing on customs arrangements

Cross-party Brexit talks between the Labour and Conservative parties on Wednesday will focus on financial services, according to the government's chief negotiator David Lidington.

"I hope it will be possible to bring members from all sides of the house together in support of a customs arrangement as part of a wider approach to our future relationship with the European Union," Lidington told the Commons.

Earlier this month, Theresa May appeared to rule out supporting a full customs union in favour of an agreement that would see Britain subjected to "no tariffs, no rules of origin checks and no quotas - while being able to operate our own independent trade policy."

However, Jeremy Corbyn's Labour Party support a full customs union and argue that this will give the UK some say in future EU trade agreements.

Lidington conceded that the cross-party talks have been "very difficult", but added that they were "constructive" as both parties were making a genuine attempt to find the best route forward.

On Tuesday, Corbyn called on the government to be more open to negotiations, stating that "we cannot go on hearing this tired old mantra that the Brexit agreement has to be adhered to."

But May will be wary of ceding ground as Conservative Brexiteers are furious that talks with Labour are even taking place, with backbencher Nigel Evans calling on May to resign over the issue and the influential 1922 committee expected to meet to discuss changing Tory party rules so that another no-confidence vote can be held before December.

Continued talks on Thursday were expected to cover environmental issues.