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.