MPs are calling on Theresa May to publish her Brexit plan by the middle of next month and make clear whether she wants to keep Britain in the single market.
The Commons’ committee on Exiting the EU also said in a report that the Prime Minister should commit to giving MPs a vote on the final Brexit deal with EU nations.
Meanwhile, the EU's chief negotiator, Michel Barnier, has offered the first hint of a compromise from Brussels to ensure member states continue to have easy access to the City, according to The Guardian.
Mrs May has said she will trigger Article 50 of the Lisbon Treaty, to formally begin divorce talks, by the end of March.
But, six months after the 23 June referendum, she has revealed very little about the Government’s Brexit plan.
"The government needs to publish its Brexit plan by mid-February at the latest, including its position on membership of the single market and the customs union, so that it can be scrutinised by Parliament and the public," said Hilary Benn, chair of the committee.
The plan must be presented in the form of a white paper, a government policy document, and should be published alongside economic assessments of the different options for market access and trade, the committee added.
The PM has insisted she would not be giving a "running commentary" on preparations, saying this would weaken the government's hand in the talks with Brussels.
On Tuesday, she is due to give a major speech in which she is expected to set out her vision for Brexit.
The report said the government should seek a transitional deal with the bloc, warning that a "cliff edge" departure would be "extremely disruptive".
The absence of transitional arrangements could push some businesses to relocate out of the UK or move investment overseas, it said.
The committee urged the Government to ensure continued access to EU markets for UK financial services providers and to keep up cooperation on sectors including defence, financial crime and counter-terrorism.
Mr Benn called for "clarity" on the Government’s broad aims.
"This is going to be a hugely complex task and the outcome will affect us all," he said.
"Whatever deal is concluded, Parliament must be given a vote on it and the Government should make this clear now."
On the other side of the negotiating table, Mr Barnier has reportedly told MEPs that he wants a "special relationship" with the City to avert financial instability once Britain leaves the bloc.
The Guardian cited unpublished minutes of a meeting and quoted a source who was present as saying the minutes represented a "more or less accurate" account of the discussions.
A spokesman for the European Commission, however, told The Guardian that the minutes, drawn up by European parliament officials, did not "correctly reflect what Mr Barnier said".
The cross-party committee on Exiting the EU includes prominent Brexiteers like Michael Gove and Dominic Raab, as well as former backers of the Remain campaign like Mr Benn. This was its first report.
A spokesman for the Department for Exiting Europe said the Government was focused on achieving a "smooth and orderly exit" and said it was approaching the talks "with the full intention of securing a deal that delivers the best possible outcome for the UK".
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