David Davis this morning ruled out membership of the EEA during a transitional deal, while admitting the government may need to take “formal steps” to leave the agreement.

The Liberal Democrats have insisted that the decision to leave the EEA and therefore the single market must be subject to a vote in Parliament.

It comes as the EU’s chief Brexit negotiator Michel Barnier warned that the “UK cannot have the benefits of Norway and the weak constraints of Canada.”

Liberal Democrat Brexit Spokesperson Tom Brake commented:

“David Davis is needlessly ruling out an option that could prevent a catastrophic Brexit and protect British jobs.

“This isn’t keeping cards close to your chest, it’s throwing our best cards away.

“The EU has made it clear that a ‘cake and eat it’ approach for the UK won’t be possible, which is why staying in the EEA and customs union remains the best and easiest option.

“The decision to leave the EEA must be subject to a parliamentary vote, so MPs have the opportunity to protect jobs and prosperity by keeping Britain in the single market.”