Senior source tells Guardian mood has shifted under pressure from British businesses to secure a workable deal

The British cabinet has accepted that free movement of people for up to four years after Britain leaves the EU will be part of a Brexit transition deal, according to a senior source.

As the EU chief negotiator, Michel Barnier, underlined the need for clarity on the British side at the end of the latest round of exit negotiations, soft Brexiters in the cabinet are now confident they have achieved a consensus about an “off the shelf” transition deal.

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