Mr Raab replaced David Davis in July but has followed his predecessor in resigning in protest to Theresa May's draft Brexit agreement, which was published this week.

Dominic Raab has quit as Brexit Secretary after just five months in the job.

Mr Raab replaced David Davis in July but has followed his predecessor in resigning in protest to Theresa May’s draft Brexit agreement, which was published this week.

In his resignation letter, Mr Raab said: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election.”

The announcement follows the City of London Corporation’s own reaction to the withdrawal agreement.

Policy chairman Catherine McGuinness described the document as a “significant step” towards finalising a deal which offered “clarity and a foundation” for financial services.

She added: “In particular, the commitment to close regulatory and supervisory cooperation is a positive move that recognises the need for any deal to reflect the City’s unique role in providing services to households and businesses across Europe.

“As we have said, it is vital that a transition period is secured to allow the sector time to work through this complex process and the suggested withdrawal agreement would provide that. Greater clarity is also needed for the European nationals who account for around a fifth of the City of London’s workforce.

“A no-deal Brexit would be in nobody’s interests. Politicians on both sides now need to see through an agreement that benefits both the UK and the EU.”

Upon announcing her proposal, which details exactly how the UK intends to leave the EU and an outline of the political declaration on the future relationship, Mrs May said: “I firmly believe with my head and my heart that this is a decision which is in the best interests of our entire United Kingdom.”

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