Cameron tells EU free movement reform 'key' to post-Brexit ties: UK govt source

Speaking on condition of anonymity, the source said Cameron told a leaders' dinner in Brussels yesterday that Britain and the EU should "have as close an economic relationship as possible and that the key to staying close is really to look at reform to free movement".

A British government source speaking anonymously added that Cameron believed free movement was "one of the driving factors in people voting to leave".

"Therefore if you're seeking to maintain a close economic relationship, you can't shy away from this issue," the source said.

Cameron was speaking at his last ever European summit and reflecting on some of the reasons why Britons delivered a shock vote in favour of leaving the European Union last week.

He outlined general thoughts rather than a detailed proposal, the British government source said.

Cameron announced his resignation following the referendum defeat and his successor is expected to take up office in September.

He has refused to trigger the formal process for Britain to leave the EU, saying that is the job of his successor, though European leaders want him to do so immediately.