Brexit talks could reach a quagmired stalemate as Theresa May walks out over 'divorce bill'.

Market backlast

Business leaders were told by No 10 told that while no final decision had been taken on walking out of talks, it is a distinct possibility.

“I do think we are looking to be as hard-nosed, as hard-headed and as cold-eyed about this as it is possible to be,” said a source familiar with No 10’s thinking.

“If any of those actions take place it will be to work towards a single objective – getting the best deal that we can.”

The comments have been seen as an attempt to limit the backlash from markets if negotiations over how much Britain owes turn sour later this year.

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Old hauntings

Government figures are still haunted by Mrs May’s speech at the Tory conference last October when the pound nosedived as she outlined her plan for Brexit.

However, the move would likely be seen as deliberately provocative by EU leaders, given that both sides have called for a cordial approach to talks.

It reflects the political difficulty Mrs May faces in explaining to the British public why the UK may have to pay tens of billions of pounds to leave the EU.

Some polls have suggested that voters are vehemently against paying large sums to Brussels, yet UK officials are increasingly resigned to the fact that they will have to pay a fee.

The move echoes advice given by Sir Lynton Crosby, the Australian campaign guru, to David Cameron when he was renegotiating Britain’s EU membership before the referendum.

The then prime minister was reportedly told to walk away from talks to get a better deal from Brussels. He declined and was later criticised for failing to win fundamental reforms.

A working group between the UK and EU is being set up in the coming weeks to negotiate the so-called “Brexit bill”. Estimates from Brussels range from €40 billion to €100 billion.

A No 10 source played down the idea of a walkout on Saturday, saying: “This suggestion has no part in our plans.”

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Marine life

The revelation comes as the UK takes another formal step towards Brexit as it tells EU allies it will leave the London Fisheries Convention.

The move, to be triggered on Monday, will let the UK regain control of waters up to 12 miles from its coast in a major boost to British fishermen.

EU countries currently catch an estimated 10,000 tonnes of fish in those waters every year. Any access after Brexit will form part of negotiations.

Michael Gove, the Environment Secretary, called the move “an historic first step towards building a new domestic fishing policy as we leave the European Union”.

He said: “Leaving the London Fisheries Convention is an important moment as we take back control of our fishing policy. It means for the first time in more than 50 years we will be able to decide who can access our waters.”

Britain will formally leave the London Fisheries Convention exactly two years from Monday.

The agreement is separate from the EU Common Fisheries Policy, which controls access to British waters between 12 and 200 miles from the coast and will be discussed during negotiations.

@mindhunter

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