Please see below for today’s update on key Brexit news items:

  • The latest talks between the Scottish and UK governments about the repatriation of powers after Brexit have concluded with no agreement. First Secretary of State Damian Green met Deputy First Minister John Swinney and Scotland’s Brexit Minister Michael Russell in Edinburgh. There are fears among the Scottish government of a power grab that could undermine the future of devolution. Mr Russell said the latest talks were “useful”, but had not changed anything. He said the Scottish government remained “absolutely clear” that it could not recommend Holyrood give its consent to the EU Withdrawal Bill in its current form. (BBC)
  • The Bank of England has warned that the task of regulating the City after Brexit will put a strain on its ability to police the financial sector. Deputy governor Sam Woods also said the Prudential Regulation Authority faced “a material risk to its objectives” of promoting financial stability, as it deals with the UK’s exit from the EU. He also outlined the risks contained in the Bank’s half-yearly assessment of financial stability, in which it warned that business conducted in the City could fragment across other financial centres, pushing up the costs to the EU and the UK. It also warned of the risk to the UK economy from potential disruption to trade and the need for banks to be braced for higher bad debt charges if loans turned sour owing to Brexit-related economic turbulence. (The Guardian)
  • Spain’s foreign minister has confirmed that the country will not seek to block a Brexit agreement by attempting to regain sovereignty over Gibraltar. Alfonso Dastis allayed fears Gibraltar could be used as a pawn in Brexit discussions, saying Spain would not “jeopardise” a future deal by demanding a change in status to the British overseas territory. (The Guardian)
  • Brexit Secretary David Davis has defended the gender balance in his negotiating team, following criticism of the number of women involved. Mr Davis noted in a letter to the House of Lords that 40% of his team in last month’s round of talks had been women and that the government strived to make the civil service “representative of modern-day Britain”. (BBC)