Theresa May put Brexit on ice until 2021 by announcing a two-year transition period during which Britain’s relationship with the EU will remain virtually unchanged.

In a keynote speech in Florence, the Prime Minister set out plans for a status quo implementation phase with the UK and EU maintaining access to each other’s markets “on current terms” and under “the existing structure of EU rules and regulations”.

It means freedom of movement will effectively continue for another four years, with Britain paying its full contribution to Brussels of around £9 billion per year in that period.

Mrs May faced an immediate backlash from Tory Eurosceptics who said Britain would not be able to reap the benefits of quitting the EU for fully five years after voters chose to leave.

It was also interpreted by some of Mrs May’s critics as an attempt to cling on to power for another four years by pushing the “real” date of Brexit back until at least March 2021, and possibly even later.