Britain is prepared to take on the European Union and compete for business by slashing taxes if France takes a "hostile" position during negotiations, David Davis has suggested.

In a meeting with the City of London Corporation, the Brexit Secretary floated the idea that the UK will switch an "alternative" negotiating strategy if the EU chooses to "punish" Britain.

He said that the UK is prepared to lower taxes, cut red tape and introduce "other strong business incentives", adding that France and that EU have "no faith" in their ability to compete with an "Anglo-Saxon" approach.