Ms Foster’s party, who are propping up the minority Conservative Government in Westminster, are adamant they would not accept any “regulatory divergence” between Northern Ireland and the rest of the UK.
The leaked deal suggested Northern Ireland would be offered a separate Brexit deal in order to avoid the implementation of the hard border – keeping the country in the EU’s customs union and single market in all but name.
Speaking on Newsnight, Urban suggested the failure to reach an agreement with Ireland was potentially the biggest signal Britain is heading for a so-called ‘soft’ Brexit.
“And, we know that is totally unacceptable to the DUP and, actually, pretty unacceptable to the business community in Ireland, it doesn’t want impediment to trade across the Irish Sea.
“I think that gives us a clue that the softer form of Brexit is in sight for the Government.
“We’ve seen all sorts of other clues, whether it be Brexit language, the transition period, accepting the jurisdiction of the European Court of Justice during the transition period, the cannon of EU law – all of that stuff, it all trends in that direction.