Report from BuzzFeed's Alex Wickham
UK senior ministers believe they can get a better deal on the Irish backstop if they commit to forming a permanent customs union with the EU, BuzzFeed reports.
Sources across Whitehall are increasingly convinced they will be able to secure a political win by adding either an end-date or an exit mechanism to the backstop ... One proposal being suggested by ministers and MPs is for the UK to make a commitment in the political declaration outlining the future UK-EU relationship to join a version of a permanent customs union. This commitment could "neutralise" the backstop and see the EU give way on an end-date or exit clause, the MPs believe.
This is speculation and not any kind of deal and the EU is the side that matters here but I think GBP can see some upside if this story -- just published -- gets some traction.
The other problem is the ERG, who would hate it. But if May can strike a deal with Labour that might be enough to get it over the finish line. It might be her only choice. Alternatively, the ERG might sense that Brexit is slipping away altogether and may be ready to settle on this and perhaps return to the customs fight another day.
Separately from a Sky News reporter:
