Donald Trump's new trade chief has urged Britain's rivals to take advantage of the 'God-given opportunity' of Brexit to take business away from the UK.

Wilbur Ross, the US commerce secretary designate, said Britain was facing a 'period of confusion' and that it was 'inevitable' there would be 'relocations'.

Mr Ross will be responsible for negotiating a free trade deal with the UK, with fears the US could seek to exploit Britain's seclusion following the vote to leave the EU.

The billionaire businessman's comments, reported in The Times, raises concerns over the so-called Special Relationship between the UK and the US.

Donald Trump's new trade chief Wilbur Ross (right) has urged Britain's rivals to take advantage of the 'God-given opportunity' of Brexit to take business away from the UK

Mr Ross was said to have made his comments to an audience of Cypriot financiers in the days following last June's referendum vote - before he had been appointed to Mr Trump's cabinet.

He said: 'I recommend that Cyprus should adopt and immediately announce even more liberal financial service policies than it already has so that it can try to take advantage of the inevitable relocations that will occur during the period of confusion.'

He is said to have added that the Brexit was a 'God-given opportunity' for financial rivals of the City of London, naming Frankfurt and Dublin in particular.

Labour said his comments should be a 'salutary warning' that other countries were ready to take advantage of the UK's vulnerability post-Brexit.

Shadow international trade secretary Barry Gardiner told The Times: 'Wilbur Ross's comments are a stark reminder that the trade deals Britain will agree in future will not depend on goodwill from our partners, but on their own shrewd political and economic calculations.

'Theresa May's government has failed to articulate a coherent vision of what kind of economy Brexit Britain will be. This makes us weak and vulnerable in the eyes of others.'

Wilbur Ross, President-elect Trump's nominee for Commerce Secretary, departs Trump Tower

The comments come amid apparently strained diplomatic relations between President-elect Trump and Downing Street.

Theresa May was embarrassed when former Ukip leader Nigel Farage became the first UK politician to meet Mr Trump after his dramatic election victory.

Farage, who joined Trump on the campaign trail, was famously pictured laughing inside Trump Tower, where he has been a repeat visitor since the election result.

By contrast Mrs May had to make do with a brief phone conversation after a slew of other world leaders had already spoken to Mr Trump.

Later, the incoming US commander in chief shocked Westminster with a late-night tweet declaring that Farage would do a 'great job' as Britain's ambassador to the US.

He added that 'many people' wanted to see him as the UK's senior diplomat in Washington.

Farage, who joined Trump on the campaign trail, was famously pictured laughing inside Trump Tower, where he has been a repeat visitor since the election result

It comes as a former governor of the Bank of England said Britain should be 'more self-confident' about its prospects outside the European Union.

Lord King acknowledged that Brexit will bring 'great political difficulties', but said that there would also be 'many opportunities' economically for the UK striking out on its own.

Speaking to BBC Radio 4's Today programme, Lord King said it was too early to judge the economic impact of Brexit, despite data since the June 23 referendum being more positive than some economists had predicted.

He said: 'I think the challenges we face mean it's not a bed of roses - no-one should pretend that - but equally it is not the end of the world and there are some real opportunities that arise from the fact of Brexit we might take.

'There are many opportunities and I think we should look at it in a much more self-confident way than either side is approaching it at present.

Shadow international trade secretary Barry Gardiner (left) blamed Theresa May's claiming it had 'failed to articulate a coherent vision of what kind of economy Brexit Britain will be'

'Being out of what is a pretty unsuccessful European Union - particularly in the economic sense - gives us opportunities as well as obviously great political difficulties.'

Lord King said it made no sense for the UK to seek to join Norway as a non-EU member of the single market, which would allow free access for businesses but probably mean accepting freedom of movement of EU citizens.

And he raised doubts over the merits of remaining within the customs union, which would allow Britain to trade goods without border tariffs, like Turkey, but restrict its ability to strike its own trade deals.

A Turkey-style arrangement would make it 'more difficult to take advantage of those opportunities,' said Lord King.

'I don't think it makes sense for us to pretend we should remain in the single market and I think there are real question marks about whether it makes sense to remain in the customs union. Clearly if we do that we cannot make our own trade deals with other countries.'

Lord King said the Government should outline its policies on immigration 'sooner rather than later', arguing that it would be a 'mistake' to make them part of the withdrawal negotiations which will be triggered when Theresa May invokes Article 50 of the EU treaties next year.