Britain reportedly ready to pay €40bn Brexit divorce bill

Downing Street has warned that negotiations are still ongoing

Britain reportedly ready to pay €40bn Brexit divorce bill

File photo of an EU flag flying in front of the UK Houses of Parliament in London | Image: Victoria Jones/PA Wire/PA Images

There are claims this morning that the UK is prepared to pay €40bn to settle its divorce bill with the EU.

The Sunday Telegraph reports that "three separate highly placed sources" have confirmed a plan which would see the UK pay €10bn a year for three years after leaving the union in 2019.

The newspaper said this would constitute a down payment on a sum which would total €40bn.

Last week, Luxembourg's Prime Minister Xavier Bettel suggested the total bill could be €54bn - however the paper has reported that Britain may be prepared to offer a compromise, allowing the two sides to move closer to discussions on a future trading relationship.

However, a senior UK government source said the report was "not correct at all."

They said they had "no idea" where the speculation had come from.

Downing Street refused to make any official comment while pointing out negotiations are ongoing.

The EU is insisting "sufficient progress" must be made on the financial settlement, the rights of EU citizens in the UK and British citizens in the EU, together on border issues with Ireland, before talks can progress.

The UK Government has acknowledged it will work towards a "fair settlement" on its "rights and obligations as a departing member state."