The UK has warned that it will not pay its Brexit ‘divorce bill’ if it crashes out of the EU with no deal.

Writing in The Telegraph this morning, UK Brexit Secretary Dominic Raab said a good deal remains “our overriding priority” but insisted Britain “need not fear” a no deal exit.

It comes as UK Prime Minister Theresa May holds a special Cabinet meeting to discuss preparations for a no-deal situation – despite insisting that she remains confident an agreement will be reached.

The UK agreed to pay the £39bn (€44bn) as part of a crunch deal agreed last December – however it now appears to be rolling back on that commitment.

Mr Raab said the UK Government "would not pay the terms of the financial settlement" if an agreement with the bloc was not reached.

He also called on "our EU friends" to match "the ambition and pragmatism" shown by the UK during the negotiations so far, adding that there would be "no deal without the whole deal."

No-deal

Westminster is due to publish a new set of technical guidelines on issues including a return to mobile phone roaming charges.

The anti-Brexit ‘Best for Britain’ campaign claims a return to roaming could cost businesspeople visiting the continent up to £778 (€872) a month.

“Getting a deal with the EU is still by far and away the most likely outcome,” Mr Raab wrote in the Telegraph.

Chequers

“I will continue to champion our Chequers proposals with Michel Barnier as the best way of securing the deep and special partnership we want with the EU.”

He is due to meet with Mr Barnier tomorrow.

Delivering his fourth and final State of the Union address to the European Parliament in Strasbourg yesterday, European Commission President Jean Claude Juncker ruled out a critical part of the plan.

He said Brussels could not allow the UK to enjoy the benefits of the single market after it left the union.

Border

He also noted that the EU will “always show loyalty and solidarity with Ireland when it comes to the Irish border.”

The UK has already agreed to sign up t a backstop solution ensuring that there will be no return to a hard border regardless of the outcome of Brexit talks.

Westminster has rejected EU proposals that would, in effect, keep the North in the single market and customs union after Britain leaves - however it has yet to offer a workable alternative.

“The European commission, this parliament and all other 26 member states will always show loyalty and solidarity with Ireland when it comes to the Irish border,” said Mr Juncker.

“This is why we want to find a creative solution that prevents a hard border in Northern Ireland.

He noted that it is not the European Union but Brexit that “risks making the border more visible in Northern Ireland.”

Tory revolt

It comes amid reports that Tory backbencher are plotting to oust Mrs May over her Brexit strategy.

As many as 50 MPs reportedly gathered for a meeting to discuss how to go about triggering a vote of no confidence in the UK Prime Minister.

Should the rebels get their way, it is likely a vote will be triggered after the Conservative Party conference at the end of September.