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The chairman of the influential European Research Group of Eurosceptic Tory MPs said the EU's refusal to accept either of Britain's proposed new customs arrangements should only serve to strengthen preparations for a no deal.

On Friday, it was reported that the EU's chef negotiator Michel Barnier was not willing to consider the UK either accepting tariffs on the EU's behalf at the border or operating a technology-based "trusted trader" scheme to solve the ongoing issue.

Jacob Rees-Mogg said: "Ireland has said it doesn't want a hard border, the UK has said it doesn't want a hard border and the EU itself has said it doesn't want a hard border - so frankly it's up to Brussels if it wants to start putting up border posts. We should call their bluff.

"It's clear the EU is not going to accept anything short of us remaining in the customs union but we're not going to split up the UK simply to help (Irish Taoiseach) Leo Varadkar at the next election.