United Kingdom to seek 'temporary' customs union with EU to 'avoid border chaos'

However, continuing membership would stop Britain being able to make bilateral trade deals with non-EU countries.

The Open Britain campaign immediately condemned the Government for "wanting to have their cake and eat it".

But Turkey, while not an EU member, is part of a separate customs union for industrial goods and can still negotiate bilateral trade deals.

And Vince Cable, the Liberal Democrat leader, agreed, saying: "The only way to guarantee "free and frictionless" trade with the EU is to stay in the customs union and single market".

But it will also seek the right to negotiate other trade deals, a possible sticking point in the talks.

The publication will also contain two other papers which will look at the availability of goods for the European Union and the United Kingdom and access to official documents after Brexit.

The lack of clarity has created uncertainty for British businesses. The chancellor restated his position in joint statement with Liam Fox, the global trade secretary, at...

The article triggered accusations that Mr Hammond had "come to heel" and sided with the Brexiteers, who prize the alleged benefits from leaving the customs union.

The Brexit Secretary will on Tuesday publish a paper in which he agrees not to implement any new free trade deals until after an "interim" transition period. "During this interim period, which will be negotiated with Brussels, Britain will look to negotiate bold new trade relationships around the world". Setting out its aims showed the UK's 'desire to ensure our exit from the European Union is smooth, orderly and successful, ' the government said.

The "future partnership paper" will be released in Theresa May's absence, after she stayed on holiday for longer than expected, only returning to Downing Street on Thursday.

Among the first to be published will be detailing plans for the border between Northern Ireland and the Republic of Ireland including documents laying out the position ahead of the next round of negotiations.