MINISTERS will next week formally agree to tell British business to begin planning for a ‘No Deal’, the Sun can reveal.

After months of dithering, a Brexit committee will approve the shift in the next few days despite fears it could convince some firms to relocate work to the Continent.

4 Greg Clark has warned that a 'No Deal' warning could spread 'panic' among British businesses Credit: Reuters

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Business Secretary Greg Clark has warned that the No Deal warning could spread “panic” among firms.

But James Forsyth reveals in today’s Sun that Ministers believe there is now little alternative given there are just three months left to try and agree an outline trade deal with EU negotiators.

One frustrated Minister said: “We’ve been having this conversation for months.” Downing Street is separately expected to be “much more public” about ‘No Deal’ planning over the coming week.

HMRC bosses earlier this week claimed there was a “systemic risk” because they hadn’t yet spoken to 200,000 firms who may need to submit customs declarations for the first time in the event of a No Deal.

4 Ministers will next week formally agree to tell British businesses to begin planning for a ‘No Deal’, the Sun can reveal Credit: PA:Press Association

Separately it emerged yesterday that Brussels has ordered EU capitals to step up their No Deal planning amid fears the negotiations could to collapse.

Eurocrats have drawn up a 15 page document warning of increased “checks and controls” if the UK quits the bloc without an agreement.

And they have cautioned that if there is a chaotic divorce they may have to force Brits travelling to the Continent to get visas.

The paper says the fact that “no progress” has been made on the issue of a backstop for the Irish border is imperilling the talks.

4 Eurocrats, led by hardline German Martin Selmayr, have drawn up a 15-page document warning of increased 'checks and controls' Credit: EPA

A source told The Sun that EU officials are worried that Member States are being too complacent about the risks of no deal.

The paper, leaked to RTE, tells leaders: “Drawing up contingency plans for the worst possible outcome is not a sign of mistrust in the negotiations.

Brussels calls on UK to 'lay our cards on the table' so we can cut a Brexit deal by end of the year

“Although the withdrawal of the UK may appear to be playing out at a very high and rather abstract level between the UK and the EU, its consequences will be very real for citizens, professionals and business operators.”

It has been drawn up by a crack task force of EU officials planning for a no deal scenario, which is led by hardline German eurocrat Martin Selmayr.

4 The dossier says that in the event of a no-deal Brexit 'the EU must apply its regulation at all borders with the UK as a third country', including the Irish border Credit: PA:Press Association/PA Images

The dossier says that if the UK leaves without an agreement next March “the EU must apply its regulation at all borders with the UK as a third country”.

This would include checks on goods, animals and food products travelling between Britain and the rest of Europe - particularly at the Irish border.

Eurocrats also say that movement of people across the Channel could be curtailed, “potentially including visa requirements”.

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They warn: “When the UK becomes a third country, shipments of goods from the UK to the EU will be subject to customs procedures and controls.

“This represents a significant increase of procedures. The possibility to physically control in a designated area (at the border or in the vicinity) must always be ensured in order to properly implement the relevant legislation.”