Britain will not pay its agreed £39 billion bill to leave the European Union if a trade deal cannot be agreed, Theresa May has told her MPs.

The Prime Minister said in a letter to her parliamentary party: “The Government has said that we are a country that honours its obligations, and that is what we will do.

“We have agreed a fair settlement of commitments we have made while a member of the EU, in the spirit of our future partnership.

“It depends upon a broader agreement being reached – as I have said, nothing is agreed until everything is agreed – so if there is no agreement then our offer also falls away.”

Mrs May also made clear that the final estimate – currently £35bn to £39bn – was far below the £50bn bill agreed with the European Commission.