‘We’re still confident of Brexit deal in September’ says No 10

The UK government is still confident that a Brexit deal with the EU can be reached in September, a No 10 spokesman has said.

Ahead of the latest round of negotiations in Brussels this week, the spokesman said the government “will continue to plug the gaps where any differences remain”.

The declaration comes amid fears of a deadlock between the UK and the EU, with both sides admitting after the last talks in London in July they still remain some way off reaching a post-brexit trade agreement.

Looking ahead to the next trade negotiations, which begin today, the No.10 spokesman said: “There are many issues that will be discussed during this week’s round, not least level playing field, fisheries, trading goods and services amongst others.” After last month’s talks, the EU’S chief negotiator Michel Barnier said a deal looked “at this point unlikely” given the UK position on fishing rights and post-brexit competition rules.

Mr Barnier said the UK had not shown a “willingness to break the deadlock” on these issues. He said there was a risk of no deal being achieved unless the UK changed its course on these topics, which are “at the heart” of the EU’S trade interests.

Mr Barnier said an agreement would be needed by October “at the latest” so that it could be ratified before the existing post-brexit transition period ends in December.

His UK counterpart David Frost agreed that “considerable gaps” remained in these areas, but argued that a deal was still possible.

The UK has ruled out extending the December deadline to reach a deal.

Prime Minister Boris Johnson has repeatedly warned the UK would not compromise on key issues like fishing rights.

“There’s every reason for us to be very optimistic about getting a deal,” he said last month.

“I’m very hopeful that we will get a deal. I think as our chief negotiator David Frost said there are some things that we simply can’t compromise over.

“People understand the arguments about the level playing field, about fisheries and there’s no point in leaving the EU if you remain locked in the lunar pole of the EU and you are unable to do things differently.”

The EU’S financial services chief had earlier warned the City of London it may have to wait beyond the end of this year to know whether it will secure prized access rights to the whole of the bloc’s market.