Brexit latest: Theresa May tells business leaders 'time is running out to secure deal'

The Prime Minister told business leaders on Friday she is aware time is running out for a Brexit deal, the head of the Institute of Directors has said.

However, Theresa May also stated that she is confident it can be done in a 35-minute conference call with around 120 company bosses to update them on the progress in the exit talks.

The PM, who acknowledge the uncertainty’s impact on industry, did not say if the possibility of extending the transition period was being seriously considered, according to Stephen Martin, IoD director general.

He told BBC Radio 4's PM programme: "She accepts fully that time is running out and a deal needs to be done certainly in the autumn, as she put it.

"We need time to get ready for that. She was very clear she accepts the uncertainty that it's causing at the minute and the impact that could be having.

"But she was making it clear to everybody that she does believe a deal can be done and she is confident.

"The only sticking point is the Northern Ireland border and the backstop arrangements."

Downing Street said Mrs May told the business leaders that "significant progress" has been made in the talks.

A No 10 spokesman said: "She acknowledged that there were a few significant issues that were still outstanding, but said that the very real sense she had from leaders around the table at the council was that they wanted to reach a deal as soon as possible this autumn.

"She emphasised that both sides wanted to have our future relationship in place by the end of December 2020 so that the backstop never needed to be used, but that the negotiating teams would work intensively on this to find a way forward."

This comes as Japanese car firms warned that failing to reach a Brexit deal must be "avoided at all costs".

Akio Toyoda, chairman of the Japan Automobile Manufacturers Association, said: "If no withdrawal agreement is reached and the transition period through December 2020 is consequently not implemented, corporate activities and consumers will be adversely affected by the impacts of suspended production activities resulting from failed just-in-time logistics operations, declines in revenue, and revised vehicle sales prices caused by spiralling logistics and production costs.

"We hope that both the UK and EU governments will continue to make maximum efforts to reach a satisfactory settlement and that a ‘withdrawal without agreement’ is avoided at all costs."

The controversy around Mrs May came as she signalled she is ready to delay the UK's final departure from the EU's hold until 2021 in a last ditch bid to end the deadlock over the Irish border issue.

Britain secured a 21-month transition period following the formal date of Brexit in March 2019.

This is to give authorities and companies time to prepare for new arrangements.

However, EU chiefs have indicated this could be extended at the European Council summit this week in Brussels.