Britain could be like Turkey and stay part of the customs union after leaving the European Union, Liam Fox has said in first broadcast interview since his promotion to Cabinet.

The news came as George Osborne, the former Chancellor, said that Mrs May should not to have "red lines" on issues like immigration in her Brexit negotiations.

The customs union includes all 28 EU member states, alongside Turkey, Monaco, San Marino, Andorra and non-EU UK territories such as the Channel Islands.

Turkey's customs union only covers goods, but not services or finance which is a large part of the UK's GDP. Crucially there is also no freedom of movement between Turkey and the EU.