Britain is prepared for ‘no deal’ and will walk away from the Brexit negotiations in March 2019 unless the European Union starts making concessions, Michael Gove has said.

The Environment Secretary has warned Brussels that ministers have agreed to “step up” no-deal preparations and that if it remains “ungenerous and inflexible” Theresa May will have to “contemplate walking away”.

Defending the Prime Minister’s controversial Brexit plan, which came in for fierce criticism from Tory Eurosceptics this weekend, Mr Gove said that Britain had shown “flexibility” and the Government expected Brussels to reciprocate.

It comes as Mrs May faced a growing backlash this weekend over her Brexit plan, backed by ministers at a meeting at Chequers on Friday, which Brexiteers fear has effectively killed off the possibility of a free trade deal with the US and Australia.

Plans for a “common-rule book”, which will also see the UK tied to EU rules on industrial goods and agricultural products, has also been interpreted in some quarters as a breach of Mrs May’s promise to take back control of British laws.