Barnier claims leaving will cost UK more

Brexit is a “lose-lose” situation for both sides but the cost to the UK will be “substantially higher”, European Union chief negotiator Michel Barnier said.

The senior Brussels official warned that skills shortages could hit the NHS and dismissed the terms of Theresa May’s plans for a comprehensive deal on financial services.

But he insisted there was “no intention of discriminating against the UK” and London would remain a “global financial centre” after leaving the bloc.

In a speech in Sofia he said: “Outside of the customs union and the single market, there can be no frictionless trade.

“Businesses will be faced with non-tariff barriers and border checks that do not exist today.”