UK will prepare for ‘all possible scenarios’ over EU differences

The UK will be prepared for “all possible scenarios”, Downing Street said, following reports ministers are working on the assumption that post-Brexit trade talks with the EU will fail to reach a deal.

The latest round of negotiations between teams led by the EU’s Michel Barnier and Boris Johnson’s Europe adviser David Frost will conclude today.

Number 10 played down the prospect of an imminent collapse in negotiations, with insiders saying the talks were “neither at a breakthrough nor a breakdown”.

But the Daily Telegraph reported that the government’s working assumption is that Britain will trade with Europe on World Trade Organisation terms – without a UK-EU deal – after the transition period ends on December 31.

Downing Street insisted that talks had been “constructive” but acknowledged that “significant differences” still remain.

Key stumbling blocks throughout the process have included fishing rights and the “level playing field” provisions that Brussels wants to prevent the UK undercutting European rivals by cutting workers’ rights and environmental protections and through the use of state subsidies.

The UK has insisted it is committed to high standards and claims that the EU is insisting on restrictions which it has not applied in other free trade agreements (FTAs).

The prime minister’s official spokesman said: “We have been clear that discussions throughout this intensified process have continued to be constructive but significant differences still remain on a number of important issues.

“Our preference is to leave with an FTA as long as it guarantees our political and economic independence.

“However, we will make sure that we are prepared for all possible scenarios.”