The Sunday Telegraph is reporting that to move negotiations along, the UK will be prepared to pay £36 billion quid for the divorce deal. To be clear, this is a offer that Whitehall officials believe they need to make to Brussels to break the deadlock. The EU has stipulated that the question of money aka the divorce bill must be settled before any talks on future relations such as trade deal, can start.
The UK's position is that talks on a trade deal should be held in paralell with talks on a divorce bill, not after but offcials believe that if a offer of £36 billion is made, then the EU must accept that negotiations about a future trade deal can happen in parallel with talks on a divorce bill. What a mess...
The ST goes on to say that the City business' have been privately warned by Whitehall that the current em-passe may not be broken and there is a real possibility the UK could walk away from negotiations in September. The EU has stated that it wants the question of money settled before the next Council of Europe meeting in October in which they will authorise, or not, the negotiations. But as said, the EU's position is that the divorce bill must be sorted out first before October, well, they would, wouldn't they?
I can't post any of the article here as its a premium article and doing so breaks the rules of this site (once they're fully written and advertised) but the article states that they have three separate Whitehall sources with direct knowledge of the talks.
I hope we walk away and pay nothing.
The average British public will not understand why we have to pay a bill to get access to a trade deal.
The next round of Brexit negotiations starts on the 28th August.