Pound soars as May pledges to avoid Brexit '˜cliff edge'

Prime Minister Theresa May speaking at Lancaster House in London where she outlined her plans for Brexit

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.

Speaking at Lancaster House, Mrs May said: “This Government has a plan for Britain - one that gets us the right deal abroad but also ensures we get a better deal for ordinary working people at home.”

Prime Minister Theresa outlines her plans for Brexit, saying that she does not want an outcome which leaves the UK 'half in, half out' of the EU

Video: UK will take back laws, borders and exit single market, PM says

May’s 12 Brexit terms

Mrs May added that Britain will not hold on to membership of the European single market, but would aim to achieve the “greatest possible access to it” through a “bold new free trade agreement”.

She said Britain would aim to secure tariff-free trade that would be as “frictionless as possible”.

Prime Minister Theresa May leaving Downing Street in London, ahead of her speech on Brexit.

Focusing on the financial services sector, Mrs May said she would do everything she could to avoid a “disruptive cliff edge” by providing a phased transition for a “smooth and orderly Brexit”.

On the Customs Union, she said 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.