The government does not want to end up with damaging labour shortages, David Davis said, amid signs that the government was moderating its stance

Britain is leaning towards a softer Brexit after ministers admitted that they were considering plans to allow low-skilled migration and could pay to access the single market after leaving the European Union.

The government does not want to end up with damaging labour shortages, David Davis, the Brexit secretary, said last night amid growing signs that ministers were moderating their stance.

Mr Davis told a CBI dinner in Wales that the government would be “ending free movement as it has operated before”, adding: “We won’t do so in a way that it is contrary to the national and economic interest . . . Britain must win the global battle for talent. No one wants to see labour shortages in key sectors.”

Earlier in the day