Theresa May presses ahead with Brexit and Queen's Speech in challenge to DUP

Senior Conservative sources today confirmed the state opening will take place next Wednesday whatever happens in the talks, claiming that Mrs May is “confident” of having “sufficient support” in the Commons.

The move effectively sets a deadline for the DUP to give the Prime Minister their backing and accept whatever offer is on the table – which it has been suggested could involve additional funding commitments.

However, critics have dismissed any notion of the Tories having the upper hand, pointing to the last-minute decision to cancel Philip Hammond’s Mansion House speech as proof of a government “in hock”.

The confirmation of the Queen’s Speech came as representatives of all Northern Ireland’s major parties headed to Downing Street to discuss arrangements surrounding ongoing efforts to reinstate a power-sharing executive at Stormont.

Sinn Fein, the SDLP and Alliance Party have all expressed concern about the impact of the impending deal between Number 10 and the DUP on the UK government’s neutrality in negotiations.

Ministers have maintained that there is no need to appoint an independent chair to oversee the process.

However, Alliance leader Naomi Long was quoted as she left the meeting claiming that the DUP holds “leverage” over the Government and its impartiality has been “compromised”.

Sources close to the DUP talks yesterday claimed that discussions were “progressing well” and the two parties are in “broad agreement on the principles of the Queen’s Speech”, including the need to deliver Brexit and spread prosperity.

However, they stressed that there was “no requirement” to secure a deal before publishing the speech next week, adding that Mrs May was “confident there will be sufficient support across the House” to pass her government’s agenda.

This has been seen as an attempt to call the DUP’s bluff, amid reports of a disagreement between Downing Street and the Treasury over whether to meet the party’s demands.

Leader Arlene Foster is said to be asking for an abolition of air passenger duty on shorthaul flights to Northern Ireland, but there are concerns that this would require giving additional cash to Scotland in order to balance payments under the Barnett formula.

Recent days have also seen reports that the Chancellor is mustering support to push for a “softer” Brexit which could see Britain remain a member of the European Customs Union. Mr Hammond was expected to spell out this new vision for Brexit during the annual Mansion House address tonight, but he pulled out of the event at the last minute.

Announcing the decision on Twitter, Mr Hammond said it had been made “in view of the Grenfell Tower tragedy”. However, the newly re-elected Lib Dem MP Vince Cable questioned his reasoning, hinting that a clash between Mrs May, the DUP and the Chancellor over Brexit policy was to blame.

“Theresa May’s extreme version of Brexit was born at Lancaster House, it should have been buried at Mansion House,“ he said. “Instead, it seems the Conservatives, egged on by the DUP, are ploughing ahead with a deeply damaging exit from the single market and customs union.

“The Chancellor should hold his ground and put membership of the single market and customs union back on the table. Brexit should be negotiated involving other parties, not by a government in hock to the DUP.”