Brexit talks on the brink over divorce bill disagreement

Downing Street has told business leaders that Theresa May
could storm out of Brexit talks over the “divorce bill”, The Telegraph can
reveal.

A senior No 10 figure briefed industry and City bosses to
prepare for the Prime Minister walking away from negotiations in September.

The move would be designed for “domestic consumption” to
show that Mrs May was playing tough over the €100 billion (£87.7 billion) some
European Union figures want the UK to pay before leaving.

The briefing took place at a point after the general
election was held last month and the figure has since left in the recent
overhaul of Downing Street, The Telegraph reported.

Business leaders were told that while no final decision had
been taken on walking out of talks, it was a distinct possibility.

“I do think we are looking to be as hard-nosed, as
hard-headed and as cold-eyed about this as it is possible to be,” said a source
familiar with No 10’s.