Labour can do Brexit deal with PM May but needs new referendum: deputy leader

LONDON (Reuters) - Britain's opposition Labour Party can do a deal with Prime Minister Theresa May on customs arrangements but the party might not support any Brexit proposal unless it includes a new referendum, deputy leader Tom Watson said. Labour is meeting the government for a third day of talks on a possible solution to the impasse over Brexit, with May seeking a further delay while she seeks to find a deal that can get parliamentary support. "We're genuinely going in with an open mind, but if it comes out of that process without the idea of a confirmatory ballot, I think we would have a bit of difficulty with our parliamentary party," Watson said in an interview with BBC radio, adding that talks on customs arrangements could be easier. "Our red line... is a form of customs union. It does seem to me there could be some meeting of minds there, but let's see where the talks go today." (Reporting by Alistair Smout and William Schomberg, Editing by Paul Sandle)