Britain eyes Brexit deal 'like no other in history'

With Britain's negotiations on the terms of its departure from the European Union set to begin on Monday, the country risks skills shortages and losing business if it ends freedom of movement without a new plan for attracting workers, the report by the National Institute of Economic and Social Research and the Chartered Institute of Personnel and Development said.

The UK wants to begin working out the details of a trade agreement alongside the terms of the withdrawal process.

In a slight softening of tone, he said that failing to secure a deal from European Union officials would be "very, very bad" for the country and insisted there must be transitional arrangements to avoid a "cliff edge".

PM Theresa May signing the letter to the European Union triggering Article 50.

A statement issued by Davis' department Sunday in London said "Despite European leaders' attempts to leave open the possibility of Britain remaining in the UK, Davis will make it clear that he is determined to achieve a Brexit deal that works for the whole of the UK".

"We want both sides to emerge strong and prosperous, capable of projecting our shared European values, leading in the world, and demonstrating our resolve to protect the security of our citizens".

Amid reports that May is set to make a "generous offer" on the rights of European Union citizens remaining in Britain, the source said London had been warned against doing so this week, on the grounds that it could drag up the thorny issue before talks had really got going.

Other officials around the table include Glyn Williams, Director-General at the Home Office, who will bring his expertise on immigration issues and Catherine Webb, a former treasury official, who is Director of Market Access at DExEU. "A deal like no other in history", Davis said in a statement as he headed into the talks.

Once agreement has been made in this phase of the talks, the second phase discussing the future trade relationship can begin.

The agenda for the meeting was agreed earlier this month following preparatory "talks about talks".

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The European Commission has said that it wants the discussions to focus on "citizens" rights, the financial settlement, the Northern Irish border and other separation issues'.

Discussions over a trade deal is meant to be held until stage two of the talks, which is expected to be this winter.

The BBC has been told by European Union sources that the talks will follow the EU's preferred pattern of exit negotiations first, with the future relations between the two sides - including the free trade deal the United Kingdom is seeking - at a later date.

Mr Hammond said he would not agree to a deal that would "destroy" Britain.

Officials on both sides have until March 2019 to work out a deal, after which Britain will official exit the EU.

British Prime Minister Theresa May has said that the vote one year ago was partly a vote for Britain to control its borders, and has said that Britain will leave Europe's single market, as membership is incompatible with restricting immigration.

The question is not whether we are leaving the customs union.

But he warned that "we need to get there via a slope, not via a cliff edge".

"No deal would be a very, very bad outcome for Britain, but there is a possible worse outcome and that is a deal that is deliberately structured to suck the lifeblood out of our economy over a period of time".

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