The pound plummeted after Theresa May’s big Brexit speech

"It is not acceptable to simply reject the other side's proposal without a detailed explanation and counter-proposals", May said in a televised statement from Downing Street.

"Everybody shared the view that while there are positive elements in the Chequers proposal for economic cooperation, the suggested framework will not work - not least because it risks undermining the single market", he said.

Tusk said at a summit in Salzburg that May's plan would not work.

Another diplomat present said: "I think she came to Salzburg with false expectations, probably caught up in what was mainly the UK's own spin about the 27 getting weak and divided".

"We want to ensure predictability for our people and businesses so we want to somehow ease, mitigate the sometimes very tense and hard negotiations for Britain's exit from the European Union because we really want to break the impasse" between them, Morawiecki added.

She addressed Northern Ireland and said that she would do everything in her power to prevent a hard border.

May warned that Britain may be heading towards a no deal Brexit, saying: "We must and will prepare ourselves for no deal".

She now has just four weeks to change their minds or come up with an emergency plan B if she is to avoid a no-deal outcome.

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May had hoped that Salzburg would strengthen her hand in the run up to her Conservative Party conference, the annual gathering of the party where prime ministers traditionally make a keynote speech on policy and the direction of the country.

"Your Brexit's broken", the Daily Mirror newspaper said.

Davis told Huffington Post there was a "rock-solid" core of party lawmakers who belonged to the European Research Group (ERG), a grouping which wants a sharper break with the EU and were willing to vote down her plans.

Many economists say "no deal" would be damaging to both the European Union and United Kingdom economies.

"I have always said that these negotiations would be tough - and they were always bound to be toughest in the final straight". May's proposal and the future of the Irish border.

"The trouble with the position the European Union took yesterday is it pushes people like me further into the camp of those who say "look, we told you so, there is no compromise or flexibility to be found on the European Union side". If there is no divorce agreement, there will be no transition - a two-year grace period created to prevent the country and its businesses from tumbling into a legal limbo. 'They left the day after so as not to have to deal with it.' He did not specify who he was referring to but Ukip leader Nigel Farage quit days after the Brexit referendum.

"It was clear today that we need substantial progress by October and that we then aim to finalise everything in November", Merkel said. "The referendum was the largest democratic exercise this country has ever undergone".

The Prime Minister has delivered an uncompromising message to the European Union over Brexit - saying she won't back down and will not reverse the referendum result. To deny its legitimacy, or frustrate its result, threatens public trust our democracy.

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