May to urge EU 'creativity' in major Brexit speech in Florence

Theresa May will urge EU leaders to show "creativity" over Brexit and remind them of the historical significance of securing a UK exit deal.

In a major speech in Florence, which the Prime Minister hopes will push Britain's divorce talks on to discussions about a future trade deal, Mrs May will set out her plan for a time-limited transition period as the UK departs the EU.

In what is arguably the most important address of her political career, the PM will remind EU member states a successful agreement is in the interest of both sides - telling them "the eyes of the world are on us".

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Mrs May is reportedly considering a payment worth €20bn (£17.6bn) over a potential two-year transitional period, in order to secure favourable access to EU markets before a long-term trade relationship is established.

The sum will be enough to fill the black hole in the EU's current budget due to be left by Britain's departure in March 2019.

The PM is expected to remind leaders of their "profound sense of responsibility" to ensure a smooth Brexit and in establishing a new economic and security partnership.

She is expected to say: "If we can do that, then when this chapter of our European history is written, it will be remembered not for the differences we faced, but for the vision we showed; not for the challenges we endured but for the creativity we used to overcome them; not for a relationship that ended but a new partnership that began.

"While the UK's departure from the EU is inevitably a difficult process, it is in all of our interests for our negotiations to succeed.

"So I believe we share a profound sense of responsibility to make this change work smoothly and sensibly, not just for people today but for the next generation who will inherit the world we leave them.

"The eyes of the world are on us but if we can be imaginative and creative about the way we establish this new relationship."

But Mrs May is also due to insist "Britain's future is bright" on its departure from the EU, as she builds on her Lancaster House speech in January, in which she first set out her Brexit blueprint.

Back then, the PM warned "no deal for Britain is better than a bad deal for Britain", as she outlined the Government's aim to leave the single market and customs union.

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In Florence, where she is likely to be flanked by Cabinet ministers, Mrs May will hail Britain's "considerable" strengths such as the UK's legal system, attractiveness to foreign investors and the country's university sector.

She will boast of the Britain's "indomitable spirit" and "an exceptional national talent for creativity".

The PM's address is aimed at moving the Brexit negotiations on from their current impasse over the size of the UK's divorce bill, on which the EU has demanded "significant progress" - as well as on the Irish border and citizens' rights - before talks can turn to trade.

The latest round of negotiations were postponed once it became clear Mrs May was planning a major intervention, while EU leaders will decide whether Brexit talks can proceed to their next phase at the next European Council summit in October.

Commenting ahead of the Prime Minister's speech, Labour MP Heidi Alexander, a leading supporter of the pro-EU Open Britain group, demanded Mrs May drop her threat to quit the EU without an agreement in place.

She said: "The Government needs to overhaul its so-far shambolic approach to Brexit.

"They should start by ditching their threat to leave the EU with no deal at all, and by putting continued membership of the single market and the customs union back on the table."

:: You can watch the Prime Minister's speech live from 2pm on Sky News on TV, online and on mobile devices.