David Frost is due to hold another round of key negotiations in London with his counterpart Michel Barnier, the European Union’s chief negotiator on Tuesday. Informal talks last week between Mr Barnier and Lord Frost failed to find a breakthrough ahead of the eighth round of formal negotiations.
Both sides want a deal agreed next month in order to have it signed off by politicians on both sides of the Channel by the end of the transition period on December 31.
But UK government officials have warned today the UK will not budge, stressing the EU should allow Britain to approach things in its “own way”.
A Government source said: “The EU must also realise that we are serious about leaving with an Australian-style trading relationship and reclaiming our independence as a sovereign nation if we cannot find acceptable terms.”
Boris Johnson’s team has made clear that it would “continue to set out our reasonable arguments, which have remained the same since talks began in February”.
Another Number 10 source stressed Brexit deal agreement is made “based on precedent”.
They said: “It’s time the EU accepted that so we can move on.”
The UK has repeatedly hit out at Brussels over demands it says have been not to other third-party nations.
Differences remain between the pair on issues such as fishing and the level of taxpayer support the UK will be able to provide for businesses once it is an independent nation.
But Number 10 warned the EU needs to show “more realism” on the “scale of the change that results from our departure”.
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8am update: Lord Frost is not scared of walking away from EU talks
The UK’s chief negotiator has said the Government is not “scared” of walking away from talks with the European Union without a deal and vowed not to blink in the final phase.
In an interview with the Mail on Sunday the Prime Minister’s Europe sherpa said the UK was preparing to leave the transition period “come what may” – even if that meant exiting with no deal, which officials have dubbed a so-called “Australian-style” arrangement.
Lord Frost told the newspaper the UK would not agree to being a “client state” to the EU and said Theresa May’s administration had allowed Brussels to believe there could be an eleventh hour concession on a trade deal.
He said: “We came in after a Government and negotiating team that had blinked and had its bluff called at critical moments and the EU had learned not to take our word seriously.
“So a lot of what we are trying to do this year is to get them to realise that we mean what we say and they should take our position seriously.”