Liam Fox denies Cabinet deal on free movement of labour after Brexit

International Trade Secretary Liam Fox has said the Cabinet has not agreed to a deal to allow free movement of labour for three years after Brexit.

His comments come after Chancellor Philip Hammond said there was "broad acceptance" in Cabinet of a post-Brexit transitional period lasting up to three years.

Dr Fox said that any such move would "not keep faith" with the referendum result.

He told the Sunday Times: "If there have been discussions on that I have not been party to them. I have not been involved in any discussions on that."

Mr Hammond said last week there would be a registration system in place for people coming to work in the UK after Brexit, during the transitional period.

"If they come here to work after we leave the European Union, during that transitional period, the sensible approach will be to seek to register people so that we know who's coming and who's going," he said.

There appears to be divisions over the UK's exit strategy for leaving the EU. Credit: PA

Tory tensions continue to brew as former exit minister David Jones branded Mr Hammond's transition initiative "deeply dangerous".

In an interview with the Mail on Sunday, he accused the Chancellor of "going on manoeuvres" while Prime Minister Theresa May was abroad on holiday.

"All this agitation by the Chancellor and his allies is hugely discourteous to her and undermines her authority," said Mr Jones.

Pro-EU Tory MP Sir Nicholas Soames praised the Chancellor, telling the newspaper: "He has restored discipline to the political infant class who want Brexit at any cost.

"Instead of mindlessly criticising him, they should thank him for putting a stop to what was in danger of becoming a pub brawl."