An anti-Brexit activist flies an EU flag during a demonstration outside of the Houses of Parliament in London on February 28, 2019.

The prospect of the U.K. leaving the European Union without any agreement or a framework for future relations looks increasingly likely.

Reports in U.K. media suggest that a meeting between senior EU and U.K. diplomats has left Brussels with the firm impression that a no-deal Brexit is now the "central scenario" of the new U.K. Prime Minister Boris Johnson.

Sterling has slipped in value over recent weeks in response to the fresh assertive line coming from Downing Street, sitting near two-year lows at around 1.22 versus the dollar.

Johnson sent his envoy to Brussels last week with the specific message that unless European officials ditch their commitment to the Irish backstop, then Britain will leave without any deal. The Bank of England has said if the U.K. does leave with no plan, there is a one-in-three chance of a U.K. recession.

The backstop is an arrangement designed to ensure no hard border is erected on the island of Ireland between the Republic of Ireland and Northern Ireland. Both sides of the debate have insisted they will not build border infrastructure but euroskeptic lawmakers in the U.K. are against any backstop, claiming it would keep Britain perpetually tied to a customs union with the EU.

On Tuesday, a U.K. government spokesperson, speaking to reporters on the condition of anonymity, suggested that Britain remained ready and willing to do a deal with Europe before the deadline of October 31.

The spokesperson claimed it was "sad" that Europe would not enter into fresh negotiations and that the U.K. government was "ready and willing" to talk.

Prior to those comments, The Guardian newspaper reported that EU officials don't believe the U.K. realistically wants to explore any new deal, claiming that Britain "does not have another plan."