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Senior government officials are in talks with EU chiefs to extend the UK's Brexit transition period to almost three years.

The UK should depart the European Union by 2019, but Britain's leading civil servants are said to be concerned about the length of time needed to make the huge changes that come with exiting the EU.

Amid these fears, senior Whitehall staff are said to be in secret talks with EU chiefs about extending the time Britain has to leave, reports the Telegraph .

One EU source with knowledge of the talks said: “What difference would a year make, honestly?”

The EU has set a date of Dec 31, 2020 for the end of the transition period, leaving just 21 months after Brexit for preparations for new customs and trade arrangements, which have yet to be even discussed.

A Government spokesman said the suggestion of a longer transition period was a “categoric lie”. The spokesman said: “The time-limited period should be determined by the length of time it takes to put in place new arrangements and we believe that should be around two years.”

Brexit splits at the highest levels of government were laid bare today - just as Cabinet minister David Davis tried to give a major speech on leaving the EU.

The Brexit Secretary journeyed to the North East to declare Britain can sign new trade deals during a "transition period" after 2019.

(Image: Getty)

His address in Leave-backing Middlesbrough set him on a collision course with the EU, which has strict rules on member states seeking trade away from Brussels.

But he was forced to deal with fallout closer to home - after Chancellor Philip Hammond, a Remain backer, boasted changes after Brexit would only be "very modest".

Mr Hammond rowed back after he was slapped down by 10 Downing Street. But today he risked anger again, saying Britain needed a "middle way" to get more access to EU markets.

The Tory Chancellor added: "The smaller the changes that happen to our access to market and to frictions at the borders, the better."

Quizzed by journalists, Leave-backing Mr Davis admitted there would always be personal differences of opinion - yet claimed the view of the government was “coherent and forceful”.

(Image: Ian Forsyth)

"There is no difference between the Chancellor and myself and indeed the Prime Minister," he insisted.

He added: "We both want a Brexit that serves the British economy and serves the British people."

Mr Davis declared Britain WOULD be an "independent country" and claimed the point the Chancellor was making was simply about the transition period - expected to last around two years after March 2019.

But Mr Hammond today emphasised the whole of Britain's Brexit plan - accusing backbenchers of trying to derail it.

The Chancellor said: "There are people on both sides of this argument who do not support us in our intention to deliver the Brexit that the British people have mandated in a pragmatic way that protects British businesses and British jobs.

(Image: REUTERS)

"There are people that wanted to stay in the EU customs union, we reject that argument.

"There are people that want us to sever our trade links with Europe and give up this market, we reject their arguments too.

"We have got to stick to the middle way, which is negotiating the maximum access we can get to European markets compatible with the red lines we have already set out about repatriating control over our laws, our borders and our money."

The clashes have fuelled threats of a fresh leadership challenge by Brexiteers and fed-up backbenchers against "timid" PM Theresa May.

Mrs May is facing public pressure from the European Research Group of 60 Hard Brexiteer Tory MPs.

Its new leader, Old Etonian Jacob Rees-Mogg, declared Brexit is at risk of becoming a "damage limitation exercise".

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He said in a speech last night: "The British people did not vote for that. They did not vote for the management of decline."

And he warned the Government's "timid and cowering" approach risked squandering the potential gains of leaving the EU.

Mr Davis was forced to do the difficult job of pleasing both of these camps in his speech today.

His bid to sign trade deals - though not actually implement them - soon after 2019 was a piece of red meat to Tory backbenchers.

He said: "For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe.

(Image: Dan Kitwood)

"Participating in a customs union should not preclude us from formally negotiating - or indeed signing - trade agreements.

"Although, of course, they would not enter into force until the implementation period has ended."

Health Secretary Jeremy Hunt hit back at Mr Rees-Mogg's claims that Theresa May has been too "timid".

Mr Hunt told the BBC Radio 4 Today programme: "Anyone who uses the word 'timid' about this Prime Minister is absolutely wrong.

"This is the Prime Minister that gave us absolute clarity after the Brexit vote that we were going to get back control of our laws, our borders, our money - the most profound strategic decision any prime minister has to make in the current circumstances."