Brexit latest: Theresa May should walk away from negotiations unless Brussels agree to trade talks next month, ex-minister says

Theresa May should walk away from Brexit negotiations if trade talks are not given the green light by Brussels next month, David Jones has said.

The former Brexit minister urged the Prime Minister to take a hard line on crunch talks as she reportedly paved the way to throw £38bn at the “divorce bill”.

"There is nothing to be gained by continuing to flog a dead horse," Mr Jones will tell a conference in London - which will also be addressed by his former boss, Brexit Secretary David Davis.

Senior Tory Mr Jones, a prominent Brexit-backer who was sacked by Mrs May in June, will say that "serious preparations" should be made for leaving the EU without a deal and adopting World Trade Organisation (TWO) terms.

The Prime Minister's hopes of securing a breakthrough at the December 14-15 European Council meeting depend on meeting the test of "sufficient progress" on the issues considered in the first phase of talks: citizens' rights, the Irish border and the financial settlement with Brussels.

Mr Jones will tell the conference: "At the December Council, the Prime Minister should insist that the EU now agree to begin trade talks without further delay.

"The UK has shown outstanding patience and goodwill since serving the Article 50 notice. It is high time the EU stopped its prevarication.

"If the Prime Minister does not receive confirmation that the EU will now start talking seriously about the future relationship, we should tell them we are suspending negotiations until they are ready to do so.

"There is nothing to be gained by continuing to flog a dead horse."

Calling for investment in personnel, infrastructure and IT systems to prepare for WTO trade terms with the EU he will say: "Putting those arrangements in place will have the doubly beneficial effect of providing reassurance to business and signalling to the EU that we are not disposed to be strung along.”

Earlier today, The Evening Standard reported that the Prime Minister was threatened with a new Tory rebellion over plans to plough £38bn into breaking deadlock with the EU.

Later on Monday, reports suggested the UK leader had won round key cabinet members to increase the amount initially offered by the government.

The two-hour gathering of the key Cabinet Exit and Trade (Strategy and Negotiations) sub-committee followed suggestions Britain was preparing to double its "divorce bill" offer to to get the EU to agree to open trade talks in December.

A source told the BBC the group had moved towards upping the amount offered to Brussels but said no set amount had been discussed.

After the meeting, a Downing Street source said: "It remains our position that nothing's agreed until everything's agreed in negotiations with the EU. As the Prime Minister said this morning, the UK and the EU should step forward together."

European Council president Donald Tusk has set a deadline of the start of next month for Britain to make further movement on the divorce bill and the Irish border issue in order for the EU heads of government summit on December 14-15 to allow talks on a future trade relationship to begin.

Number 10 has dismissed as "speculation" reports claiming Mrs May could be prepared to offer a further £20 billion in payments, which would bring the total sum Britain is prepared to pay to settle its liabilities to around £38 billion - well short of the 60 billion euro (£53 billion) sought by Brussels.

Ahead of the Downing Street gathering, Mrs May insisted the UK "will honour" its commitments with the EU.