Barnier: I’m working day and night for a Brexit deal

No-deal Brexit 60% likely, says UK Government's Liam Fox

This would means UK-EU trade defaults to World Trade Organisation terms at the end of March 2019, when the official Brexit process ends, without a transitional period, which has ratcheted up fears of the worst-case cliff edge scenario in the City and beyond.

The benchmark FTSE 100 was down 17 points or 0.22 percent at 7,642 in late opening deals after rallying 1.1 percent on Friday. After reporting a 5 percent rise in first-half profit before tax, the lender said it remains cautiously optimistic for global growth in the remainder of the year.

"But the worldwide trade secretary is right to say there is a risk of the negotiations not succeeding and the government has to prepare for all eventualities".

He said that Barnier had rejected Prime Minister Theresa May's latest plan, agreed by her cabinet, on the grounds that "we have never done it before".

The Government has admitted its proposals are unprecedented, but Dr Fox said Mr Barnier's response "makes the chance of no deal greater".

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No. 10 insists the government remains confident it can get a good deal. He added: "It's up to the EU27 to determine whether they want the EU Commission's ideological purity to be maintained at the expense of their real economies".

The blunt criticism comes as an European Union chief said the Prime Minister was failing to take a strong stance with the bloc, and was harder to negotiate with than USA president Donald J. Trump, describing her as "irrational" and "emotionally inspired" throughout the Brexit negotiations.

The Prime Minister held talks with French President Emmanuel Macron on Friday, cutting short her holiday to visit his summer retreat.

Meanwhile, another prominent Brexiteer, former minister Priti Patel, has called on Mrs. May to have the "backbone and confidence" to back Britain in the negotiations with the EU.

Writing for the Telegraph's she said the United Kingdom was in a "strong position" when it came to a future trade deal because "we are dynamic, competitive and growing" - while the European Union "desperately needs our money".

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