The UK will leave the European Single market and agree a new free trade agreement with the EU, Prime Minister Theresa May has confirmed.
And this would allow the country to cut immigration.
In a long-awaited speech setting out the Government’s plan for Brexit, she said: “We will get control of the number of people coming to Britain from the EU. Because, while controlled immigration can bring great benefits, filling skill shortages, delivering public services, making British businesses the world beaters they often are, when the numbers get too high, public support in the system falters.”
The Prime Minister said that her plans for Brexit meant quitting the single market.
Instead, she said that she will seek “the greatest possible access to the single market on a reciprocal basis, through a comprehensive trade agreement”.
Mrs May said that she wanted to remain part of a customs agreement with the remaining 27 EU states, but said she had an “open mind” over whether this would be through associate membership of the Customs Union or through some other arrangement.
Parliament will vote on the new EU deal
She also revealed that the final Brexit deal reached between the UK and European Union will be put to a vote of both Houses of Parliament.
Mrs May did not make clear whether a vote against the agreement would result in the UK remaining in the EU or in Britain crashing out of the 28-nation bloc without a deal.
Speaking at Lancaster House in London, Mrs May said: “When it comes to Parliament, there is one ... way in which I would like to provide certainty. I can confirm today that the Government will put the final deal that is agreed between the UK and the EU to a vote in both Houses of Parliament before it comes into force.”
Under Article 50 of the EU treaties, Britain will have two years to negotiate a deal after it informs the European Council of its intention to quit - something which Mrs May has said she will do by the end of March.
Chief EU negotiator Michel Barnier has suggested that an agreement must be concluded by October 2018 to allow time for ratification before Britain leaves in March 2019, meaning that the Commons and Lords votes are likely to come during that six-month period.
We'll make sure it works for every region and nation of the UK
The Prime Minister said the Government's planned "industrial strategy" would ensure Brexit worked for everyone.
"It’s why that plan sets out how we will use this moment of change to build a stronger economy and a fairer society by embracing genuine economic and social reform.
"Why our new Modern Industrial Strategy is being developed, to ensure every nation and area of the United Kingdom can make the most of the opportunities ahead.
"Why we will go further to reform our schools to ensure every child has the knowledge and the skills they need to thrive in post-Brexit Britain. Why as we continue to bring the deficit down, we will take a balanced approach by investing in our economic infrastructure - because it can transform the growth potential of our economy, and improve the quality of people’s lives across the whole country."
A warning for other EU countries not to punish the UK
Mrs May said the UK wanted to continue to be a friend and partner to the EU - but warned that the country would not accept a “punitive” deal designed to punish it for leaving.
If other EU countries tried to impose one then the UK would simply walk about without an agreement, she said.
Mrs May said: “No deal for Britain is better than a bad deal for Britain.”
And this would be bad for the EU too, she insisted.
But we still want to be friends
Mrs May said: "The decision to leave the EU represents no desire to become more distant to you, our friends and neighbours. It was no attempt to do harm to the EU itself or to any of its remaining member states.
"We do not want to turn the clock back to the days when Europe was less peaceful, less secure and less able to trade freely.
"It was a vote to restore, as we see it, our parliamentary democracy, national self-determination, and to become even more global and internationalist in action and in spirit.
"We will continue to be reliable partners, willing allies and close friends. We want to buy your goods and services, sell you ours, trade with you as freely as possible, and work with one another to make sure we are all safer, more secure and more prosperous through continued friendship."
Midland MP demands deal to protect the car industry
Birmingham MP Liam Byrne called for a special deal for the car industry, to protect the West Midlands economy.
The automotive sector employs 49,900 people in the West Midlands but about 60 per cent of car parts are imported into the UK from overseas, often from EU countries.
Mr Byrne (Lab Hodge Hill) said UK-based manufacturers would become less competitive if they were forced to pay tariffs on imported car parts, or to cope with delays because of new custom checks.
He said: “Over the next couple of years we’re set to break all records for car industry production. We’re doing well thanks to our hard work. We’re going to need a special deal for the car industry - or the Midlands is going to suffer.”
Pound Sterling strengthens as Prime Minister speaks
The pound soared as Mrs May outlined her vision.
Sterling rose almost 2% against the US dollar, reaching 1.227, as Mrs May said the final Brexit deal with the EU will be put to a vote of both Houses of Parliament, while stressing the need for Britain to strike strong global trading ties.
The pound rose as high as 1.145 versus the euro.
Labour demands a voice for the West Midlands in Brexit talks
Sion Simon, Labour candidate for West Midlands mayor, renewed his calls for the West Midlands to have a role in the UK's Brexit negotiations.
Following the speech, he said: "The government in London has learnt nothing from the Brexit vote. The democratic mandate for Brexit will be fulfilled - but who is going to stand up for the special interests of the West Midlands if we are not given a seat at the negotiating table? We know we can’t rely on the Tory government in London for that.
"If Northern Ireland, Scotland and Wales have all been given a seat at the negotiating table - and there are more of us here than in any of the devolved nations - then why not us?
"This is England – and we deserve the best deal from Brexit. English regions must not be side-lined. We deserve as good a deal from Brexit as Northern Ireland, Scotland and Wales. Give us a seat at the table and let the voice of people in the great English regions be heard”.
Speech raises more questions, says expert
Dr Matt Cole, teaching fellow in the Department of History at the University of Birmingham, said: "Theresa May has answered many questions which have hung over the government for months; but she has raised more that will take years to resolve.
"The relationship between Britain and Scotland, between the British economy and EU states, and within the Conservative party now move into the spotlight."
