Rishi Sunak's government would have "considered a Swiss-style relationship with the EU"

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Senior officials in Rishi Sunak's government plan to bring Britain into a Swiss-style relationship with the European Union.

Chancellor Jeremy Hunt signaled last week that Mr Sunak's administration intended to break away from Boris Johnson's approach by removing the majority of trade barriers with the bloc.

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High-level government sources have suggested that pursuing frictionless trade means moving towards a Swiss-style deal with the EU.

It is understood they will not return to freedom of movement, the newspaper reported.

Downing Street sources dismissed the report on Saturday, but The Sunday Times suggested that behind closed doors some government officials indicated the UK could do not.

A source told the paper: "It's obviously something the EU would never offer us upfront because they would say you're trying to have your cake and eat it, but the reason I think we'll get it is because it's overwhelmingly in the corporate interests of both sides."

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Switzerland and the EU maintain close economic relations based on a series of bilateral agreements, giving the country direct access to parts of the EU internal market, including the free movement of people.

< p> However, the model requires provisions such as more liberal European migration and payments to the EU budget.

These provisions would be red lines for Brexit hardliners, especially those who are members of the European Research Group.

Simon Clarke, the former Upgrade Secretary, was among those who cr Itified any suggestion that the UK could pursue a Swiss-style arrangement on Saturday night.

The Tory MP tweeted: "I really hope and believe this is not something on the table. We have settled the question of leaving the European Union in 2019 ."

Press Association contributed to this report.