Brexit news – live: European Parliament sets Sunday deadline for deal as Barnier says ‘good progress’ made

Mr Gove has said while the negotiations with the EU had made progress, “significant” differences between the two sides remained.

“The process of negotiation has managed to narrow down areas of difference. It is certainly the case that there are fewer areas of difference now than there were in October or indeed July,” he told the Commons Brexit Committee.

“The areas of difference are still significant and they do go to the very heart of the mandate which the country gave the government in 2016.”

Michael Gove has said he believes the chances of an agreement with the EU on a post-Brexit trade deal are “less than 50%”.

Giving evidence to the Commons Brexit Committee, Mr Gove said the “most likely outcome” was that the current transition period would end on 31 December without a deal.

“I think, regrettably, the chances are more likely that we won’t secure an agreement. So at the moment less than 50 per cent,” he said.

Delays at UK ports ahead of the end of the Brexit transition period have been condemned as a “chaotic mess” by peers.

Liberal Democrat Baroness Randerson challenged ministers about the impact of delays on food supplies.

But Tory former cabinet minister Lord Lilley accused critics of taking an almost “ghoulish delight” in highlighting problems that were not unusual.

UK importers are reported to be struggling with congestion problems at Felixstowe and Southampton and there are fears of major delays at Dover from the new year.

A no-deal Brexit would send likely hit the pound and damage the economy, the Bank of England’s interest rate setters have warned in their final scheduled meeting before the deadline for the end of the transition period, economics editor Ben Chu reports.

The warning comes as hopes rises that the UK government will be able to agree a free trade deal with the EU ahead of 31 December, when the UK, by law, departs the single market and the customs union.

Labour leader Sir Keir Starmer again stressed that a post-Brexit trade deal would be in the national interest.

He told reporters: “The prime minister said he had an oven-ready deal, that’s what he told the country a year ago.

“He needs to get on and deliver that and then we’ll look at it.

“I’m very clear that no-deal is not in the public interest and therefore the public interest lies in us getting a deal.

“We are not sitting on the fence because the prime minister hasn’t even delivered a deal yet.”

There’s already some push back on the AFP claim that Michel Barnier has told officials a Brexit trade deal is “possible” by Friday.

One EU official, who declined to be named, has told Reuters that disagreements over fisheries were not yet resolved, and many more minor issues still required “polishing”. They said that while sealing a deal was possible by the end of the week, they “wouldn’t bank on it.”

Michel Barnier has reportedly told officials that a UK-EU trade deal is “possible” by Friday. AFP is citing European Parliament sources for the claim. Leaders of political groupings in the Brussels parliament, remember, have made clear they will not meet to ratify a trade deal this year unless one is agreed before Sunday.

Tory MP Mark Francois will be delighted. Big Ben is to be reconnected so that it can bong at New Year’s Eve, the House of Commons authorities have said.

The bell will be tested in the days leading up to New Year’s Eve to ensure it can produce its bongs when the clock strikes midnight. One of the tests will be at 11pm – which coincides with the moment the UK leaves the EU’s single market and customs union.

Repair work prevented it bonging for Britain’s formal political exit from the EU on 31 January – despite Francois’ fervent wishes and crowdfunding campaign.

The leading Conservative MP Tobias Ellwood has now apologised, sort of, for attended a 27-person private dinner listed as a Christmas Party earlier this week – an event he insists was a “business meeting”.

In a statement posted on Twitter, Mr Ellwood did use the term “apols” but added in his statement: “I appreciate, given the current challenges, some will question the wisdom of my attendance. I’m sorry that coverage of my well-intended attendance may have muddied the government’s clear message as we head towards Christmas.”

Influential Conservative MP Tobias Ellwood has insisted he did not break Covid rules aimed at limiting large gatherings when he attended a dinner for 27 guests at a private club in London – but home secretary Priti Patel has disagreed.  

The chairman of the Commons’ defence committee gave a speech at the Iraq Britain Business Council (IBBC) event at the Cavalry and Guards Club on Tuesday. Although the dinner was listed as a “Christmas Party” on the IBBC’s own website, the MP for Bournemouth East has insisted it was a business meeting.

However, Patel has accused him of breaching restrictions by attending the event, said the matter would be “followed up” and suggested her Conservative colleague could even face a fine.

Asked by ITV News whether Ellwood’s actions were an egregious breach of the rules, she said: “Of course, it is exactly that… Having dinner outside of the rules with a large number of people is a breach of the regulations.”