Theresa May is optimistic she is close to striking a Brexit deal with Jeremy Corbyn involving a customs arrangement and “dynamic alignment” on workers’ rights, finally breaking the monthslong impasse at Westminster — but at significant political cost to the two main parties.



As both the Conservatives and Labour lick their wounds following bruising local election results Friday, government sources are increasingly confident that an agreement will be reached with the opposition over a Brexit deal that can be put to a vote in the House of Commons.

But both Brexiteer Tory backbenchers and Remain-supporting Labour MPs urged their respective leaders not to use the local election results as an excuse for an agreement. Downing Street believes it will manage to do a deal with Corbyn but is worried Labour will not want to back a deal before the European elections.

In the last week, government ministers and officials presented Labour with a new offer on a customs arrangement that would effectively see the UK remain in the key aspects of a customs union with the EU, sources familiar with the talks told BuzzFeed News.

The proposed customs arrangement would ultimately meet the World Trade Organisation’s definition of a customs union, including a common external tariff that would see the UK apply the same tariffs to imported goods as the EU after Brexit.

May is also set to make Labour what one government source described as a “generous” offer on workers’ rights, which would mean the UK at a minimum follows new Brussels rules on workers’ rights after it leaves the EU.

The offer would be tantamount to the government accepting in full Labour’s demands during the last few weeks of the negotiations, a source familiar with the talks said.