‘your own government the timetable of your own government in the move to notification in the supreme court. what judgments in the move to notification in the supreme court. whatjudgments will you be making about what is achievable under the article 50 negotiations, and will you be reviewing that as you go through the process? first of all, i would point out that the timetable i set out was by the end of march next year. yes, the supreme court has the come forward with its judgment on the case that was taken before it on the government's appeal. but i expect to be able to trigger to go 50 by the end of march next year. so it hasn't in any sense blown the timetable of course. but it will be confirmed that it is your intention to cover as many aspects of our future relationship with the eu as possible within the article 50 negotiations? within the negotiations we will be having with the eu, my intention to cover not just the process of withdrawal but also the future relationship. what

would be the major immediate consequences of would be the major immediate consequences of failing to agree a deal, in your view? you mean failure to agree a deal and the european union not having agreed...m to agree a deal and the european union not having agreed... if we find ourselves with the european parliament vetoing any deal agreed between the other 27...|j parliament vetoing any deal agreed between the other 27. .. i would imagine the process would kick in, the 27 would determine whether they wished to do continue negotiations, they would have to, we would have to agree to that but that would be the next step they would take, i imagine. good afternoon. my committee is looking at the machinery of government issues and capacity issues across the whole of whitehall. you say in answer that

the machinery of government is working well and that you have your owfi working well and that you have your own specialists in number ten advising you personally. you have also set up these separate departments alongside the treasury and defra, each with their own concerns and priorities. so, how will the government synthesise all these different approaches into a simple uk negotiation policy?|j these different approaches into a simple uk negotiation policy? i have also set up a cabinet subcommittee, which is responsible for looking at the eu exit issues, this is... i have set up a number of subcommittees to introduce that approach to government. of course, debates taking place regularly within that committee on the issues, the sorts of issues we are thinking about, the future trade relationship, aspects of the legal processes , relationship, aspects of the legal processes, article 50 and so forth. so what kind of capacity does the

releva nt so what kind of capacity does the relevant subcommittee have in the cabinet office in order to synthesise all these different approaches —— approaches from other departments so there is a coherent brief in front of the committee? the papers are submitted by secretaries of state. the majority of those papers will come from the secretary of state for exiting the european union. it is that apartment that is the clear focus on that issues. but where it is relevant for the departments to issue papers, the secretaries of state will do so. but inevitably, it will be seen as something of a rival to other departments because it is a separate department. who is holding the reigns between these departments and what capacity do you and the cabinet 0ffice have in order to make sure all these different approaches are drawn into one approach?|j all these different approaches are drawn into one approach? i will challenge the concept that it is a

rival department. i think it is the focus of the work that is being done in relationship to brexit. but it does call on the expertise of other departments. we do not get that rivalry, we do not get that duplication between dexeu and the other departments. so it is responsible on your behalf?fi other departments. so it is responsible on your behalf? it is responsible on your behalf? it is responsible for working with other government departments... with your authority? yes. so who will actually negotiate article 50 withdrawal? cull it will be conducted at a numberof cull it will be conducted at a number of levels. i will have a will to play in relation to discussions with the european leaders. the secretary of state for exiting the european union will have a key role to play in negotiations, but obviously, there will be a lot of technical negotiations and discussions taking place at official

level. so who will actually negotiate the uk's new trade relationship with the eu? that will be part of... insofar as it is part of the negotiations, it will be those who are negotiating who will be part of that. but they will bring in the expertise in relation to the trade aspects. willie trade minister have a special role in that, doctor liam fox? as we unfold the way in which that trade negotiation will ta ke which that trade negotiation will take place, obviously we will bring in expertise, both official and ministers as appropriate from the department of international trade. many governments have a single trade negotiator, the us government for example, who deals cross departmental it. do you envisage

that we have some playing such a rule, or should we have? we are currently building up the specific trade negotiation expertise within the department for international trade and we will be making in due course, we will be setting a more clearly. . . course, we will be setting a more clearly... it is your intention that the expertise should be applied to the expertise should be applied to the trade negotiations? where it is appropriate. the committee is also looking at civil service capacity issues by department, starting with the foreign & commonwealth office. the institute for government has produced a paper that suggests departments are having to choose between meeting the co—existing commitments undermines that were placed on them before brexit arose, and the brexit priorities. how confident are you that there is sufficient capacity across to prominence to deal with those

priorities? i am tempted to say in a nswer to priorities? i am tempted to say in answer to your question that i am not at all surprised when former civil servants suggest we need to employ more civil servants. right, 0k. at the chance of a suggested when he was foreign secretary that —— the chancellor suggested, that the foreign office ticking over a lot of aspects of foreign affairs that are currently handled by the eu, that he would need to change the layout, the capacity of the foreign 0ffice. how will the government reinforce its diplomatic network in the eu capitals after brexit? well, let us see what the nature of the relationship that we have with the european union is. we of course will look to see, there will be a number of areas where the european union has been negotiating an undertaking activity on behalf of the member states, notably in trade, that is

where we need to build up our trade negotiating expertise, because we have not needed to do this for a significant period of time because it has been done under the european union. we have been contributing to that debate on foreign affairs that has been taking place within the european union, but as we look to what is going to be the role of the uk outside the eu, it is notjust about what we do in relation to the eu member states, it is also how we build up our presence globally. it is not just about looking build up our presence globally. it is notjust about looking at europe, but the rest of the world. could i just come back to one or two points. david davies made a firm commitment oi'i david davies made a firm commitment ona numberof david davies made a firm commitment on a number of occasions that parliament would be at least as well informed as democratic institutions oi'i informed as democratic institutions on the continent, including the european parliament, about brexit negotiations. in the course of those negotiations, are you as committed

to that as your brexit minister? we are committed to ensuring that parliament does have an opportunity to look at these issues to be discussing these issues, to be putting its views forward. david davies and i are very clear, we are not going to give a running commentary of every aspect of the negotiations. but we will make sure that parliament has the opportunity to be informed, as i have said. so you are supporting david davies in that objective? we are very clear that objective? we are very clear that we want parliament to be able to have the opportunity to debate and discuss these issues. the european parliament as a specific role within the negotiations, which is different to the role that the uk... there seems to be this idea

that somehow we not letting parliament do anything. we have made state m e nts parliament do anything. we have made statements to parliament, having debates, there is a whole variety of commitments we have given to parliament. this is about information. we will ensure that parliament has the opportunity to discuss these matters as we go through the negotiations but what we will not be doing is setting out on an hour by hour basis, a running commentary with which aspects of the negotiations were discussing what the particular discussions are which are taking place. we need to have the flexibility to enter those negotiations on that basis. people will want to draw their own conclusions from the response, but i have to say for my part, i did not hear a yes to the question. i would like some clarity on a couple of other points. is it your intention that parliament should vote on a

final deal once it has been negotiated? what i have said is that it is my intention that parliament should have every opportunity to consider these matters and i am also clear that we ensure we deliver on the vote of the british people, which was able to leave the european union. 0k, again, was that a yes or a no? union. 0k, again, was that a yes or ano?| union. 0k, again, was that a yes or a no? i gave the answeri union. 0k, again, was that a yes or a no? i gave the answer i gave, chairman. in the exchanges we had right at the beginning, you did give a very clear answer to one question, which is you ruled out seeking an extension of the negotiating period from two years. as part of your objectives. i said it is not our intention to extend that period of negotiation. the but you did not completely rule out completing the negotiations within the negotiating period. but applying an

implementation date at some point after 2019. specifically provided for in the treaty, that is article 50, sub clause three. that is what i am seeking clarity on. article 50, sub clause three... i will read it if you like. it is not about an implementation phase but about an extension of the period of negotiation. well, ithink extension of the period of negotiation. well, i think that is a matter of interpretation. the treaty shall cease to apply to the state in question from the date of entry to the force of the withdrawal agreement. that can be after 2019 and indeed, is generally understood to be capable of that interpretation by most people and that is why i have been asking this question. i just want clarity about that question. sorry, chairman, in which

case, i had misunderstood the question you're asking me earlier. i thought you were asking about the end that the period be extended. that is the negotiating period. you did give a very clear answer to that question. i am asking you a different question. i would expect, asi different question. i would expect, as i hope to have tried to answer in the first place, i would expect us to be able to note is —— to negotiate a deal within the two—year period that is set out. but it may be the case that there are some practical aspects which require a period of instrumentation thereafter. —— implementation. that is what we mainly for businesses on the continent and others but that has to be part of the negotiation.” quite understand, but just has to be part of the negotiation.” quite understand, butjust to clarify, you therefore may seek to use the discretion provided by

article 50, sub clause three, to negotiate an implementation date after the end of the completion of the negotiations, even if the negotiating period is within the two—year framework? negotiating period is within the two-year framework? well, we will meet to... we will discuss whether we need an implementation phase. whether the point at which the treaties cease to apply may be a different issue from whether or not you have an implementation phase. the reason i keep raising this question is because what i get primarily from major finance to institutions and businesses is that we are at risk of walking straight towards this cliff edge and what they want is some kind of assurance otherwise they will take pre—emptive measures now. if i canjust read you what one large financial institution has given me. they do not want to be named. but they have given permission for this to be read out. i have quoted this to the chancellor

as well. it was only basis of this that if all thoughtful politicians would want a arrangement. he said, this institution have said that two years is unlikely to be sufficient to complete the changes needed, this same documents as severe disruption to client services may occur, that is without this period, causing financial instability and significant cost to the wider economy, europe as well as globally, and firms may need to activate contingency plans at this point, thatis contingency plans at this point, that is now, rather than waiting until the terms of the agreement are known, leading to the financials instability discussed earlier in this document. that is what is being put to me, and to the treasury committee, and i think to a wide numberof mps. it committee, and i think to a wide number of mps. it is that that is leading us today various ways to press for a commitment from you for an early negotiation of some kind of

transitional arrangement, and clarity that there will be one to prevent a cliff edge in april of 2019. that is what i hoped to get a commitment on. it is precisely because we understand that businesses, financial services and other businesses may need need that in fermentation phase that we are talking about, and it may be that the government needs a period of time. —— implementation. to make sure that its systems to adjust whatever the arrangements be. actually, the difficulty here and the uncertainty here, and i accept it is uncertainty, is that the extent to which that is required actually depends on the nature of the deal that is agreed. the extent of change that is required by that deal. thank you very much, prime minister. we have had just over an hour on brexit, i'm sure we will be

coming back to it on many more occasions. we will go to move on to health and health care for an hour. do you believe the nhs can do everything it has promised with the money it has got? the nhs, we asked the nhs to come forward with their five—year forward plan and they did so. we have provided the money they requested for that five—year plan. there has been some discussion about whether that figure is exactly accurate. some do not agree on it. i do not want to get bogged down in numbers but i want to know, what is the difference... what difference in nhs services would you see being delivered between eight billion and 21 billion? they've put forward a

proposal, the government looked at it, the government then funded the proposal. the figures are that in 2014 proposal. the figures are that in 201a to proposal. the figures are that in 2014 to 2015, the nhs budget was 90.1 billion. there is a 10 billion increase in real terms. , the nhs in england is now looking at how they are in the process of putting forward the changes necessary in relation to the plan that they agreed. that plan also included 496 efficiency services, which the nhs at the time or possibly frightened to say wasjust at the time or possibly frightened to say was just too great. we saw an extraordinary examining of accounts where strong words were issued. how bad does it have to get before you acknowledge that there is a sustainability problem for the

long—term future of the nhs? sustainability problem for the long-term future of the nhs? what we have also seen in the past year is actually a number of hospitals who previously worked in deficit coming out of deficit, managing the finances in a different way, so the number of hospitals in that position has now significantly reduced. i think what the government it was the right thing, which was to say to the nhs, you determine what your five year forward plan is, nhs, you determine what your five yearforward plan is, and we have given back into that five—year forward plan. the nhs is now putting that into place. you must be aware that into place. you must be aware that the productivity, it is one of the highest and most positive returns on investment. it yields up to £3 for each pound invested. has

this been a consideration by the government more widely on health funding? i'm sorry, i'm not quite sure i have fully got your question. if you single productivity in the nhs is extremely good... though, if invest £1 nhs is extremely good... though, if invest e1 in the nhs you get £3 back on the economy, effectively. has the government looked more widely at the economic benefits of investing in the nhs? what we have looked at, you raised the issue about the service of the nhs and the impact that has on the wider economy by people being able to be in work, healthy, self—supporting and so forth. but in looking at an aspect like that, of course one of the benefits of the seven—day nhs is precisely that it will have that sort of benefit. people will be able to access the nhs ona people will be able to access the nhs on a confident basis of the

service they are getting, across the week, for many people when they are able to do so, when it suits them... ina hearing able to do so, when it suits them... in a hearing we had, we heard from a senior person in the department that the additional £10 billion which you have mentioned and which we had heard of so often from the government, he said it had not been costed because it is difficult to get a precise figure or to have a mechanical approach on how you deliver seven—day services in different areas. and the seven—day nhs has not in fact been properly costed. would you agree? no, what i would say about the seven—day nhs is that it would say about the seven—day nhs is thatitis would say about the seven—day nhs is that it is being delivered in parts of the country, it has been delivered on existing budgets, very often it is about actually how delivery is taking place in different parts of the country. well, i would have different parts of the country. well, iwould have big reservations about how it will work but i do not wa nt about how it will work but i do not want to get drawn than that alley. i

think the bigger picture here is that there is currently an exercise to stabilise nhs budgets. extraordinary measures were taken to balance the account —— the accounts. you say it is getting better now but already a plan is in place for a potential winter crisis, taking money from other parts. but all of this makes the assumption it is possible to manage demand to match the funding available. that is a big gamble, prime minister. if it does not work, and everybody acknowledges that it not work, and everybody acknowledges thatitis not work, and everybody acknowledges that it is challenging, if it does not work amat what will you do? villa first of all, -- it is up to nhs england and the government that we do see the plans being put forward that maintain the service in the nhs we want to see. there are changes being proposed by the government. you dismissed the issue of the seven—day nhs, i think that is an important issue... no, i said

it had not been costed.” is an important issue... no, i said it had not been costed. i think there are some very good examples of there are some very good examples of the way in which that is being delivered. by innovative approaches, by particularly in various parts of the country. but what will you do if demand, if this exercise to get the budgets to balance does not work? what will you do if demand does not match the money available? the focus we should have at the moment is on looking at how the plans for the nhs are being put into place, making sure that the nhs is able to make the efficiencies that the nhs itself said they would be able to make. there is a question, an issue in a lot of areas for the demand that is being put on the nhs and the expectations people have of the nhs. we wa nt expectations people have of the nhs. we want to make sure that the service that people are getting is the right one, and that covers

issues such as sometimes people but demands of hospitals were to be dealt with at their local gp will stop so there are issues that need to be addressed. for example, just taking diabetes, it is increasing every year, and by 2030 8.8 of the -- 8.8% of every year, and by 2030 8.8 of the —— 8.8% of the adult population are expected to have the condition. you ta ke expected to have the condition. you take specialist services, but is 14% of the budget, the demand is going up of the budget, the demand is going up but the funding is not going to be available to meet that demand. we are putting in the strategy in relation to diabetes the aim of which is to reduce the number of people that develop type two diabetes. but it takes 10% of the nhs budget. 80% of that budget for diabetes goes on, the pig —— complications. that is about the management of the condition. that is

partly about individuals but also partly about individuals but also partly about individuals but also partly about how the nhs managers that condition. i do not disagree. but it is not going to solve overnight the issue of the increase just on diabetes alone, let alone the other areas. will you accept that on diabetes, actually, there is an issue that is notjust... that on diabetes, actually, there is an issue that is notjust. .. prime minister, absolutely. i can fear due to the reporter diabetes which said much that. —— i can refer. the report acknowledges, it is notjust about funding, but funding, we have acknowledged over the last year alone, is an issue. it will be apparent by the end of this financial year whether these plans to stabilise the nhs are working. i put to you but it is not good enough

to sayjust wait and see. it is far more serious than that. what will you do, personally, as prime minister, if the nhs budget is in the same state it was at the end of la st the same state it was at the end of last financial year? the point the same state it was at the end of last financialyear? the point i made is a simple one, what we have been doing is working with parts of the nhs to ensure that the financial management is in place so that... 86% of trusts are hitting their financial plans no. that is careful work that is being done with the trusts to ensure they are able to meet those financial arrangements and the financial management necessary. that is where the focus should be. we all want to see the nhs providing the right level of service for everybody. but we also wa nt to service for everybody. but we also want to make sure the management of the finances within the nhs is such that they are able to deliver that. prime minister, the number of

elderly people in our society, it is sometimes a challenge to public services. the number of people receiving social care fell, six and a person less, there are now around 1 million who should be entitled to social care but are not receiving it. spending on social care fell by 996 it. spending on social care fell by 9% over the last parliament. do you agree with the social care, crisis means crisis? as i have said previously, i accept there are pressures on social care was that why the government has made available the opportunity for local authorities, as will set out in the

settle m e nt authorities, as will set out in the settlement last week, the opportunity for extra money to be available to be spent on social care. but there is also a question not just about those short—term pressures , not just about those short—term pressures, but in the medium term, ensuring that we are seeing, delivering and best practice being introduced in terms of delivery of social care across the country. you talk about fewer people being able to access social care. there are many local authorities where we are seeing more people accessing social ca re seeing more people accessing social care as a result of the decisions that local authorities have made. pa rt that local authorities have made. part of that may be about the social ca re part of that may be about the social care precept but also but they are operating the services. boo perhaps. it would be interesting to see how many there are. moving on to the money from the statement last week. there is not any new money for local councils, is there? instead of having a 2% increase in the

precept,... the having a 2% increase in the precept, . .. the money having a 2% increase in the precept,... the money for the extra grant comes from the new homes bill, which is all money recycled within councils. we have a particular problem of the authorities with the lowest tax base in the poorest areas often having the greatest need, where the increase precept will not actually fund the increase in the minimum wage they will face next year. is it right for authorities in the poorest areas that they will have less money to spend on social ca re have less money to spend on social care next year? in response to the first point, i'm happy to give you examples of authorities where the numbers accessing social care have gone up. there are examples out there of local authorities in the way that they are operating these arrangements and operating in terms of the social care. but the decision that was taken, announced in the

local government finance initiative was, yes, to bring forward the opportunity for local authorities to increase the social care precept. so that instead of having a 2% increase, they will have two years at 3%. increase, they will have two years at 396. over three years it is the same money? what is then happening is that we are also seeing towards the end of this parliament is the money from better care fund going in. buti money from better care fund going in. but i repeat, ithink money from better care fund going in. but i repeat, i think it is wrong to assume that the only solution and social care is the solution and social care is the solution about funding. if you look at the different delivery, the levels of delivery that you see across the country, there is short—term pressures, that we've acknowledged, there is a medium—term job to be done in terms of the delivery of social care and ensuring that we see good practice. some very good examples of integration for example between social care and nhs trusts. good examples where you see

virtually no delayed discharges from hospital beds because of the way this integration is being operated. we need to ensure that there is reform in the provision of social care. longer term, we need to make sure that we have got sustainable arrangements so that people can have the reassurance and comfort that social care is going to be available in the old age. prime minister, all the evidence from the king's fund and the nuffield trust and the local government association is showing a funding gap by the end of this parliament of somewhere between the 2.5 and {3.5 billion. the king's fund said in a statement last week that it fund said in a statement last week thatitis fund said in a statement last week that it is nowhere near enough to address next year's funding gap. i put the point directly to simon stevens at the select committee last week, whether we can sort this all out by getting local authorities to get the performance up to the level of the best. he said, of course you need to do something about the performance of the worst performing authorities, but you still need more funding. i asked about the point of

integration. he said, will integration. he said, will integration alone sort out the funding pressures? the answer is no. the idea somehow that this problem is going to go away if only we improved performance in some local authorities and we integrate health and social care better isn't simply true? is it? i have set out what i believe we need to do in looking at theissues believe we need to do in looking at the issues of social care. we accept short—term pressures, and that is why the funding arrangement for local government has been changed, to enable to bring forward that increase in the precept, the social ca re increase in the precept, the social care precept, and to retain money from the new homes bonus. there is a more medium—term issue which is about delivery, it is about saying, what is working well out the? and how can we ensure that we are seeing the best practice in terms of social care? the reform that is necessary, which is about integration of social ca re which is about integration of social care and health, in some parts of the country that is being done very well and innovatively. in others,

not so. we need to ensure that that is being done. there is a longer term issue, which has not been addressed by governments for for too long. they have got this issue. it is about how to ensure that we have got a sustainable system of social ca re got a sustainable system of social care going into this future —— they have ducked this issue. you visited germany last week, our thoughts are very much with the people in berlin, because we were in berlin and saw the christmas market, that is very poignant at present. the select committee was there. there are a country which 20 years ago by good night they had a problem, and they came toa night they had a problem, and they came to a solution which fitted our country —— saw that they had a problem. they are now taking it forward. simon stevens said last week he thought we needed the national consensus on a new deal for retirement on security for people in the old age. the local government association has asked for that, the king's fund have, the nuffield trust have all called for a major review of social care funding and provision for the future. as prime minister, are you prepared now to commission that review, to set it in train, and will you actually invite the

opposition parties to join will you actually invite the opposition parties tojoin in will you actually invite the opposition parties to join in with that so we can get a cross—party consensus to get a long—term sustainable agreement on this issue? i think it is important that any decisions taken on social care are going to last into the longer term. that is important because we want people to have that reassurance and comfort. what i propose to do, this government has already started looking at this issue in relation to long—term social care, obviously any proposals put forward we will want to be discussing in parliament to have an opportunity to look at those. want to make sure that we have got a solution that is going to be sustainable. —— we want to make sure. this isn't going to be an immediate, let's have a quick review over a matter of weeks and that's it. we're going to have to get this. attem pts it. we're going to have to get this. attempts have been made already to try and come up with. the beginning, not without. all parties were involved. studio: we will leave the liaison committee for now. it has a bit further to run. you can continue to

watch theresa may's first appearance in front of the liaison committee on the bbc parliament channel. a lot of the bbc parliament channel. a lot of the first part of it was about britain's vote to leave the eu. now they are moving on the health and social care issues. in terms of brexit, some very interesting comments. we are leaving the eu, but not europe, the reason may stressing that she still wants to see cooperation on a lot of issues so theresa may. adam and again and again that deadline will be hit. —— adamant against. she will be making adamant against. she will be making a speech in the new year laying out new details about the gospel plan. let's get more analysis from our political correspondent, carol walker, who has been listening and watching a presence that. what did you make of what the prime minister was saying, especially on brexit? interesting that from the outset, the prime minister made it clear that she was not going to be given age —— giving a huge amount away. she said it would be in the best

interests of getting a good deal if she set out to much, but she did promise that speech in the new year when she said she would be giving us a much stronger idea of the sort of approach that the government was going to take to the negotiations. now, she was pressed pretty hard by some of the mp5 on a number of different issues. breast first of all on whether in fact parliament would get a vote on any eventual deal —— pressed. she has stopped short of giving that assurance. she said there would be plenty of proper opportunities for mp5 to discuss and consider the process. she pointed out of course that this great repeal bill will be going through parliament. that will be essentially incorporating all those laws which are now governed by eu treaties into british law. and of course parliament will have a say in the process of getting that legislation through. but she stopped short of giving an assurance that mps would get a vote on the deal as a whole. i think the other issue on which she

was really pressed was immigration. it was interesting to see if that cooper, who was her opposite number as shadow home secretary for much of the time that theresa may was home secretary. and what yvette cooper wa nted secretary. and what yvette cooper wanted to know is, was the government going to try and hit that target for getting net migration down to the tens of thousands? would that be part of the eu negotiations? howard that target fitted to the idea of controlling immigration from the european union —— howard that target. theresa may's answer was, let's see how that negotiations go. we have got the target and we want to get there, but this is not the moment to say exactly how we are going to deal with net migration from the eu. although of course she did stress that getting back control of immigration was one of the key issues in the referendum on which the government was determined to deliver. so a long session, the prime minister really pressed for a

lot of detail. i think still where going to have to wait until the new year before we get a much clearer idea of exactly how the government is going to approach these negotiations. she was also pressed on what might happen in the worst case scenario that we end up leaving, having triggered article 50, without any agreed deal. that's right. she said, well, there are plenty of contingency plans. she also addressed this whole question ofa also addressed this whole question of a transitional deal. but, as she pointed out, this can mean different things to different people. it could be that when we reach the end of the two years, it is in the interests of either britain or the other 27 countries to extend the negotiations. that is a possibility. the prime minister insisted that the government was not planning on trying to extend the timetable. she insisted time and time again that the government could and did intend to meet the timetable to trigger to go 50 by the end of march next year and to leave the eu within two years after that —— to trigger article 50.

but a transitional deal could also be the set in place arrangements for companies in terms of regulations and trading deals with the rest of the eu to tide them over while the new arrangements were tied up. now, what theresa may was insisting is that she wants the negotiations on a new trade arrangement to happen alongside the negotiations for leaving the european union. now, that's not the view of many key players in europe. the french and the germans say, well, you leave the eu first and then you start to arrange the trade deal. theresa may says, article 50 talks about setting in place a new arrangement, that has got to be a new trading arrangement. she didn't rule out some sort of transitional deal. i think what she was keen to stress is that this would not be some sort of delaying tactic, that she did very much intend the process continues to the timetable set out, and that britain will leave the eu by the spring of 2019. 0k, will leave the eu by the spring of 2019. ok, carole walker, thank you

very much indeed. now, we will get an update on the dreadful events in berlin yesterday. it's feared the man who drove a lorry into crowds of christmas shoppers and tourists in berlin, killing 12 people, could still be at large. police say they're not sure whether a man they arrested near the scene last night was in fact the driver, and that there could be more than one attacker. germany's chancellor, angela merkel, says she's "appalled, shocked and deeply saddened" by the attack in the heart of the capital. security is being stepped up at christmas events across germany. our correspondent paul adams reports. berlin early this morning. amid the scattered debris of the festive season, a weapon of mass murder is slowly removed. for the second time this year, a lorry has been used to target traditional celebrations in europe. siren wails. chaotic scenes last night after the truck ploughed at speed through the market. wooden stalls splintered and dozens of people caught up in the mayhem.

i hear loud noise from the houses that are destroyed by the truck, and heard some screams, and yeah, that was the first impression. i can actually show you it from my balcony as well. it isjust like from my house, two minute's drive. what was in my mind, you can't think of anything, you are just shocked and you want to help those people. i went down, people were, you know, asking for help, but we just, ijust took two wooden parts on top of them but i couldn't do much, i couldn't help them. i saw people lying on the ground, in...you know, all bodies being twisted, like arms, legs were — people were on top of each other. the truck had polish number plates. a body found in the cab is thought to be that of its polish driver.

but a masked man behind the wheel escaped on foot. soon afterwards, a suspect was picked up over a mile away. he is said to be a pakistani citizen who arrived in germany a year ago. if this was the work of an asylum seeker, it poses a real challenge for the woman who threw open the country's doors over a year ago. translation: i know it will be particularly difficult for us all to bear if it is confirmed the perpetrator had asked for protection and asylum in germany. that would be particularly repulsive for the many germans who are engaged day in, day out, in helping refugees, and for those who genuinely do need our protection and who are striving to integrate themselves into our country. germany's interior minister said security would be stepped up across the country, but that germans should not succumb to fear. translation: we must not

compromise our lifestyle, the way we want to live. we must not let people who want to destroy that way of life. because if we do that, the enemies of freedom have already won. the attack took place next to the ruined church that stands as a monument to the savagery of the second world war. he speaks german. the priest, martin germer, says it's important for germans to tell each other what the people of france have told each other — that life must not be stopped. at the scene of the massacre, the christmas stalls are shuttered and silent. but there's fresh anxiety — the police now saying they are not sure if they have the right man. the perpetrator of this, they fear, may still be at large. let's hear now from two british eyewitnesses who were caught up in the attack. we literally just sat

we literallyjust sat down with a bite to eat. and we've heard what we thought were explosions, and we sort of lea pt to thought were explosions, and we sort of leapt to our feet to go, ten metres, three metres round the corner to see. when we realised a lorry had gone through, wejust corner to see. when we realised a lorry had gone through, we just were com pletely lorry had gone through, we just were completely shocked. but instinct prevailed for us to sort of get in there and get helping as much as we could. but i don't think we really comprehended what was going on until, you know, we started shifting stalls. i think the instant we realised something was wrong, when we luckily decided to sit on that bench, and we heard this massive noise. it was so loud. it started like a massive explosion —— it sounded like. it sounded like

gunshots. 0ur instant reaction, the same as everyone else that was around us, was to get up and look and try and help. a lot of people we re very and try and help. a lot of people were very shocked. some people were just staring at the scene in front of us. a few people were putting people into recovery positions. mother and, you know, the children, we re mother and, you know, the children, were trying to take them away from the scene, because what we saw, you know. it was absolutely horrific. and i don't think we can put really into detail enough words reallyjust how devastating the scene was.” think it was a situation where we didn't realise at that specific time that it was a lorry that went through. it hit about five christmas stalls. the stall that we saw, obviously there was people lying on the floor. we weren't sure if it was red wine or if it was blood. but we did see, i rememberthere were

people trying to put the stall, we decided to put our food down and left the stall up with them. we realised you know, that the people unfortunately underneath were already passed. so then rhys was trying to help them with the stall. i saw trying to help them with the stall. isawa trying to help them with the stall. i saw a man trying to move on the ground. so my first reaction was, i need to see if he's 0k. ground. so my first reaction was, i need to see if he's ok. i'm hoping he's all right now. unfortunately, i wouldn't know. he was speaking a different language. but it was more ofa different language. but it was more of a murmur. unfortunately, different language. but it was more ofa murmur. unfortunately, he different language. but it was more of a murmur. unfortunately, he had a severe gash on the side of his head. irememberjust severe gash on the side of his head. i remember just holding severe gash on the side of his head. i rememberjust holding his hand and saying, you know, everything is going to be ok. you're fine, just lie there. because obviously we didn't know the extent of the injuries. it was, i think another woman went to me as well, and we we re woman went to me as well, and we were both holding the man's can. unfortunately, from what i saw, he was the only one that was really moving by that stall. and the rescue officer then came over to us and

said, you know, he needs to lie down and we'll get everything sorted. just two of the british people who we re just two of the british people who were there last night who saw that attack on the christmas market the in burlington. 12 people were killed in that attack. about 50 injured —— in berlin. the news conference said that 30 of those injured people are very badly hurt indeed. we can see the scene again now at that christmas market, and just a game that scene of devastation. the lorry at some points driving up to 40 mph through the crowds. hence some of the very, very serious injuries that we are talking about as well, as 12 people who lost their lives. also just tell you that our bbc monitoring service has been picking up monitoring service has been picking up some information from polish television. you'll remember that the lorry was registered in poland. it had a polish registration plate they appear to have tracked down the

owner of that lorry. he has been telling journalists this afternoon that he had confirmed the identity of the man who was found in the passenger seat. it was a cousin of his. he is telling polish television that his cousin had been stabbed and shot. and the police also saying that the man they do have in custody, they are not certain that he was the man responsible. merlin's police chief saying that whoever was behind this attack could still be at large —— berlin. and they are urging heightened vigilance. that's the latest from berlin. in a moment, a summary of the business news this hour. but first, the headlines on bbc news: angela merkel visits the scene of a lorry attack on a christmas market in berlin which killed 12 people. it's being investigated as terrorism. a suspect is in custody,

but police say they are not yet certain whether the man they're questioning was the attacker. and the body of russia's ambassador to turkey is repatriated to moscow after he was shot dead by an off—duty turkish policeman. in the business news: lloyds bank is to buy credit card firm mbna from bank of america forjust under £2 billion. it's the bank's first acquisition since the 2008 financial crisis. lloyds, which is nearly 7% state—owned, said mbna would be a "good fit" with its own credit card business. the deal is expected to be completed in the first half of 2017. uk retail sales volumes rose at their fastest pace since september 2015 in the year to december. that's according to the employers' organisation, the cbi.

however, it expects retail sales growth to slow down next year, as a result of the fall in sterling prompted by the brexit vote injune. facebook has been accused by the european commission of misleading it during its investigation of the company's 2014 takeover of whatsapp. the commission says facebook misled it when the company said it was impossible to match users' facebook and whatsapp accounts. in august, whatsapp said it would do just that by linking users' phone numbers with their facebook identities. the christmas shopping extravaganza is about to hit its peak — with the british public expected to spend some £20.6 billion feeding themselves over the holiday period. but it is also a time when the supermarkets are in a desperate price war to hold on to market share, cutting prices — just at a time when the cost

of their imported goods, because of the fall in the value of the pound — is going up. joining me now form the bbc newsroom is mike coupe, chief executive of sainsbury‘s. hello. this chance, as it were, in the next few days to sell this huge amount of food, is it also a chance to grab market share and more importantly to hold onto it into the new year? indeed it is. for sainsbury‘s, it's a great time of year, we sainsbury‘s, it's a great time of yea r, we really sainsbury‘s, it's a great time of year, we really look forward to serving our customers brilliantly well. because at this time of year customers want to make themselves proud and by—products from companies like sainsbury‘s for great quality and great service —— and want to by—products. if we do a greatjob, they will want to come back to us in they will want to come back to us in the new year. we see this as an opportunity to showcase the products that we sell. algae and little have been stealing your market share. ——

how the and liverpool. they and pulling away, and bake? we've done that over the last three or four yea rs, that over the last three or four yea rs , we that over the last three or four yea rs, we have that over the last three or four years, we have done well and maintained our market share. we have invested in the quality of the products that we sell. that is particularly the case around christmas time, where you can buy all of the great thing that sainsbury‘s stands for, things like the truffle oil and macaroni cheese bites, the lobster nibbles. these are things that customers comes specifically to sainsbury‘s dubai. that gives us as a competitive advantage and the difference between ourselves and the discounters —— sainsbury‘s to buy. ourselves and the discounters —— sainsbury's to buy. your last profits were down 10%. that is the price you are paying for keeping the market share. indeed, it is a challenging market. from a customer point of view, that is great news. a christmas party —— basket at sainsbury's is cheaper than it was a few years ago. from a customer point

of view, that's great news. the grocer magazine, which i'm sure you're familiar with, says that as britain heads towards brexit, the age of cheap food and ring is coming to an end. it is the end of falling prices, isn't it? we does them no. there are undoubtedly cost pressures in oursupply chain, there are undoubtedly cost pressures in our supply chain, so wejust don't know. prices are going to go up don't know. prices are going to go up next year, they can't stay down and they must be eating into your margins with the fall in the value of the pound and being creasing price of the foreign imported goods. we genuinely don't know. as you've seenin we genuinely don't know. as you've seen in the last year, things can change very, very rapidly. we can already see in some parts of our business is, like fuel and petrol, writers have risen as a result. but year and year, writers have risen as a result. but yearand year, our writers have risen as a result. but year and year, our christmas dinner will be £5 cheaper than it would have been. you must have hedged, obviously, hedged your purchase possibly up to christmas. but that cover, as it were, of your currency

and moving forward, that must becoming to an end now? you must be running out of the cheap euros you bought before the brexit vote? it's true to some extent that we've hedged the prices that we sell products for. and of course during the last three or four weeks we've actually seen currencies like the euro and the dollar devalued relative to stirling. again, it's a very uncertain world that we live in. the point of view is that we do a greatjob serving customers over christmas, offering them quality food and seeing prices reduced year and year. when do you think your prices are going to have to start going up next year?” prices are going to have to start going up next year? i genuinely don't know. it's difficult to predict at this moment in time. our job is to do a greatjob for our customers, make sure that we mitigate the price with our suppliers and maintained the pressure on ourselves to offer great value the customers week in, week out. one interesting development from the fall of the pound is that

you are switching —— you can switch from uk producers? sainsbury's buys everything it can from within the uk. we are already a big supporter of british agriculture. the meat that we sell is predominantly british. indeed, if you take this christmas, a lot of the sprouts, carrots and parsnips will be from uk suppliers. we have fantastic relationships with our uk growers. asi relationships with our uk growers. as i say, we source as much as we possibly can from the uk already. thanks so much for that. thank you. let's ta ke thanks so much for that. thank you. let's take a quick look at the markets. the dow jones let's take a quick look at the markets. the dowjones is very close to the 20,000 level. it's not very important, but psychologically it does have a certain impact. there is a feeling that the trump rally is getting a bit of steam. it is 27 points away from it. all of the market is looking fairly positive. not

massively so, but they are on the up. that's the business news. we'll have a complete round—up of the markets in about an hour's time, see you then. time for a look at the weather. thank you. batten down the hatches and get ready for a roller—coaster ride with the weather over the next few days. it's going to be turning quite stormy. the stormiest spell of the winter so far. not quite just yet we've got a couple of days before the worst of the weather arrives. already gale force winds are starting to reach north western parts of the uk. you can see a trail of cloud in the atlantic. a storm will start to fall here very soon. at the moment we have got a weather front crossing parts of scotland, the winds are increasing in the number of other parts of the country as well. for the time being we are dealing with the usual weather for this time of year, show us around.

these temperatures overnight, blustery showers in western scotland. four deg, starting to get a bit colder. air coming straight out of the north atlantic. northern parts of canada. really maybe, wintry showers, a bit of sunshine too. tomorrow, later in the day it is looking soggy across the south. it's not a pretty picture. still some wild are being brought in by the soggy weather in the south, around 12. —— milder air. the soggy weather in the south, around 12. —— milderair. if you are out tomorrow evening, the gusty winds and the showers continue in the north, clear at this central bit of the country and the rain will continue in the south—east until well after dark. thursday, another blustery day. but there will be plenty of sunshine around. not a bad day in the south, not so windy. but here the gales continue. the waves. building across the western coasts. remember there's going to be a wind chill -- remember there's going to be a wind chill —— the waves will start

building. single figure temperatures everywhere. this area of low pressure was to develop. we call this explosive, it is a fancy word for a developing storm. it has been named by the met office as storm barbara. there is an ample warning in force from the met office already. this is for north—western parts of scotland —— there is an amber warning. gales may reach 90 is parole. by the time we get to christmas eve and in the christmas day there could be another storm. this one is still open to question. we are trying to affirm that up in our forecasts. the we are trying to affirm that up in ourforecasts. the message is, there are severe forecasts on the way, just keep track of the weather forecasts here on the news channel and make sure you tune into your local radio stations as well. stay one step ahead of the weather. this bbc is news. the headlines at four:

angela merkel visits the scene of a lorry attack on a christmas market in berlin which killed 12 people. it's being investigated as terrorism. german police are questioning a suspect but say they can't be sure he was behind the attack. it was so loud, and it sounded like a massive explosion. it sounded like gunshots, and our reaction like eve ryo ne gunshots, and our reaction like everyone around us was to get up and look and try and help. also this hour: president putin promises to "step up the fight against terrorism" after russia's ambassador to turkey was murdered yesterday. the body of andrey karlov, who was shot dead by an off—duty