Sources say prime minister’s red lines remain an obstacle in talks with Labour

Talks between Labour and the government are unlikely to advance much further in the coming week unless Theresa May moves on her red lines over a future customs union, sources close to the talks have suggested.

David Lidington, who is leading the government’s talks with Labour, said a compromise would have to be reached but played down suggestions that a government shift was imminent and added that Labour would also have to move.

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