Britain ‘could refuse to pay Brexit divorce bill’ if EU does not stick to its word on future trade deals

Britain could refuse to pay a penny to the EU after Brexit if Brussels goes back on a commitment to a future free-trade deal, according to reports.

EU law states that a trade deal cannot be made with the UK until after it has left the union, meaning the Government would have to sign an agreement with no guarantees on future trade.

Several UK officials have told Politico that Britain is now considering not paying the divorce bill to the bloc if Brussels goes back on any agreement after the papers are signed.

One said: “We need enough assurance on the future partnership to put it to the House of Commons.

“No one has decided how to hand over the cash.”

When asked if the UK could hold back any payments, he added to the website: “That’s one of several things we could do, potentially.”

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Another official described the payment refusal as an “option”, but hoped it would not get to that stage.

Prime Minister Theresa May announced last year that the divorce bill would be in the region of £35-£39 billion.

Meanwhile, Brexit Secretary David Davis dismissed claims Britain is heading for a “Max Mad-style” dystopia after it leaves the European Union.

In a keynote speech in Vienna, Mr Davis said the UK was determined to maintain its track record of high regulatory standards – from worker’s rights to the environment – after Brexit.

Addressing Austrian business leaders, he said the commitment offered a “clear read across” into the forthcoming talks on a free trade deal with the remaining 27 member states.

However Labour said his assurance that the UK would not lead a “race to the bottom” outside the EU “isn’t worth the paper it’s written on”.