May to EU: Let's get a deal done in two years

The letter from Theresa May triggering the Brexit process was handed over today.

The Prime Minister said talks on a deal over their future relationship should not be allowed to drag on longer than two years a she warned that Europe's prosperity was at risk from protectionism and hinted at the threat to security from Russia.

In the letter triggering Article 50 of the Lisbon Treaty, delivered to Brussels today, she wrote: "Weakening our cooperation for the prosperity and protection of our citizens would be a costly mistake."

Mrs May pressed the remaining EU states to agree to discuss the terms of a future trade deal alongside talks over the terms on which the UK will leave.

Brussels are known to want to prioritise discussing the terms of the 'divorce' first, including Britain's settlement of its liabilities which could cost Â£50bn, before future trade and security arrangements are negotiated.

Experts on trade deals have expressed scepticism that a comprehensive agreement could be completed in two years.

In her letter, Mrs May said "the future partnership between the UK and the EU is of such importance to both sides" that it was vital a comprehensive agreement on both aspects should be completed in the two year process triggered today.

But she also called for "implementation periods" to follow Britain's departure from the EU in March 2019, arguing people and businesses on both sides will need time to "adjust in a smooth and orderly way to new arrangements".

The letter said: "We recognise that it will be a challenge to reach such a comprehensive agreement within the two-year period set out for withdrawal discussions in the Treaty.

"But we believe it is necessary to agree the terms of our future partnership alongside those of our withdrawal from the EU.

We start from a unique position in these discussions – close regulatory alignment, trust in one another’s institutions, and a spirit of cooperation stretching back decades."

Mrs May has rejected calls from the SNP for a new referendum on Scottish independence but today's letter revealed she is likely to temper that approach with the promise that powers returning from Brussels will go to devolved administrations.

In the letter to European Council president Donald Tusk, she wrote: "It is the expectation of the Government that the outcome of this process will be a significant increase in the decision-making power of each devolved administration."