Theresa May Florence speech live updates: PM pleas to stay in the Single Market for two years after Brexit

What will be in Theresa May's big Brexit speech?

Theresa May has proposed remaining in the single market for a transition period of around two years after Brexit.

In a landmark Brexit speech in Florence, the Prime Minister said existing market arrangements should continue to apply during a two-year implementation period after Britain leaves the bloc in March 2019.

She indicated freedom of movement would also continue during the transition but workers coming into the UK would go through a "registration system".

Ms May said: "Clearly people, businesses and public services should only have to plan for one set of changes in the relationship between the UK and the EU.

"So during the implementation period access to one another’s markets should continue on current terms and Britain also should continue to take part in existing security measures. And I know businesses, in particular, would welcome the certainty this would provide.

"The framework for this strictly time-limited period, which can be agreed under Article 50, would be the existing structure of EU rules and regulations."

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Key Points

• PM's plea to stay in the Single Market for two years after leaving
• Sterling falls as traders give verdict on May's speech
• Read the Prime Minister's speech in full

[22 September 2017 14:58 · Andrew Griffin]

Here's the surprise (sort of): Theresa May proposes that the EU and UK go on through a transitional period. During that, there'll be commitment to keep the current rules, including freedom of movement, but workers will have to register.

That transition period will be time-limited, Ms May guarantees. It's likely to take about two years.

[22 September 2017 14:59 · Andrew Griffin]

"Let us open our minds, if possible, to a new period of co-operation", between the UK and Europe, the prime minister says. It feels like a conclusion – but again, more might be coming.

[22 September 2017 15:01 · Andrew Griffin]

Theresa May has confirmed that the UK will keep to its commitments – which is to say that it will pay any money it's decided that it owes. But she doesn't mention an amount of money, and so that argument is probably yet to come.

[22 September 2017 15:02 · Andrew Griffin]

She also confirms that she's dropping "no deal is better than a bad deal". In fact, no deal would be seen as a failure in the eyes of future generations, she says.

[22 September 2017 15:03 · Andrew Griffin]

There's the end. The future is "in our grasp". Let's do it, she says. And applause.

Now here comes the questions – from a press pack that appears to be rather bored.

[22 September 2017 15:05 · Andrew Griffin]

The first question: 600,000 Italians in the UK. They'll be allowed to stay. But how?

TM: We want them to be able to stay with the same rights they have. We have negotiated so that, just like those people, Britsh nationals can stay where they're living now. We're close to agreeing that, and I have set out an assurance that those people will be able to stay. I value the contribution that Italians have made. I have quite a few living in my own constituency and playing a very real part in our social and economic life there. I want to be clear that we want Italians to stay, we value your contribution.

[22 September 2017 15:07 · Andrew Griffin]

Second question: Some people might be upset to find out that a lot of things will be mostly the same for a few years. Are they justified in being cross? And also: is no deal still better than a bad deal?

TM: On the last point, we continue to think that. But I've just set out what a great deal we could have, if we approach it right. On the first point, people voted to leave the EU, and we will. But the process of leaving will be orderly and smooth so people have confidence. We need to provide for that smooth and orderly withdrawal. We will be asking EU citizens to register. That will let us take full control of our borders.

[22 September 2017 15:09 · Andrew Griffin]

Third question: During the transition period, will we still be in the single market? aNd doesn't it sound like we're moving towards being like Norway?

TM: The transition is just a bit of time to do the practical changes to put the partnership into place. But you can't do that till you know. But we'll leave in 2019. aNd negotiations will continue until that time. But let\s think creatively, let's be ambitious. We start from an unprecedented place.

[22 September 2017 15:11 · Andrew Griffin]

Fourth question: It seems like the government lays out positions and then sees what Europe will agree to. Can you point to anywhere where your strategy has won?

TM: The negotiating guidelines I set out mostly mirrored the ones we talked about. This is a negotiation – sides put out their positions and hopefully come to an agreement. but what' I'm saying is here is an opportunity to come to agree wto a new partnership, which hasn't  been in place in the past, and this one will show a great future for our prosperity.

[22 September 2017 15:12 · Andrew Griffin]

Fifth Q: What would you say to the people who voted to leave and say we should have left already and "turned off the direct debit" and end free movement straight away? Are they betrayed?

TM: We voted to leave in a way that did as little damage and disruption to our lives as possible. But we're being clear the implementation period will be time limited and we'll be leaving in March 2019.