Theresa May is ready to kickstart Brexit talks with a higher ‘divorce bill’ offer Theresa May is ready to increase Britain’s “divorce bill” offer to the European Union in an effort to break the […]

Theresa May is ready to increase Britain’s “divorce bill” offer to the European Union in an effort to break the Brexit deadlock.

The government has already signalled that it is prepared to hand over €20bn (£17.8bn) to cover the costs of the UK’s withdrawal from the bloc.

Downing Street is now working through various scenarios under which the offer could be raised in return for Brexit talks moving on to their second major phase in the New Year.

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The issue is set to come to a head at a meeting of EU leaders in five weeks’ time.

‘Money isn’t the problem’

“The real problem is deciding what our end-state relationship with the EU will be.” An anonymous, senior minister

“The money isn’t the problem,” one senior minister told the Financial Times. “The real problem is deciding what our end-state relationship with the EU will be.”

The government has been reassured by indications that some Eurosceptics are prepared to pay a little more as the price for ensuring Britain heads out of the exit door.

However, ministers are also aware that too large an offer would infuriate many MPs, and could lead to a backlash among voters.

The move emerged as the sixth round of formal Brexit negotiations got under way in Brussels ahead of the crunch leaders’ summit on 14-15 December.

Michel Barnier, the EU’s chief negotiator, said the moment was approaching for a “real clarification” of Britain’s position on the financial settlement, as well as EU citizens’ rights and the Irish border’s future status. His talks will continue today with Brexit Secretary David Davis.

Progress

Whitehall sources have told i that progress is being made over the “divorce bill” between the two sides as UK lawyers pore the detail of the EU demands.

They insist that the atmosphere is improving both in Brussels and with backbench MPs prepared to make limited concessions to breathe new life into talks.

No move on offering extra cash is expected before Chancellor Philip Hammond’s Budget on 22 November.

Downing Street refused to be drawn on Thursday night over reports of fresh government flexibility over Britain’s exit payments, describing them as “speculation”.

Lord Kerr, the architect of the Article 50 process, will argue on Friday that the British people are in danger of being “misled” by Government claims that Brexit cannot be reversed.

‘We can change our minds’

Lord Kerr, the former UK ambassador to the European Union, will insist that Mrs May’s decision to send the letter invoking Article 50 does not mean Brexit was inevitable.

“We can change our minds at any stage of the process,” he will say in a speech in London.

In apparent response, the government disclosed that it planned to enshrine an exit date in law.

It will table an amendment to the EU (Withdrawal) Bill, which returns next week to the Commons, spelling out that Britain will leave the EU at 11pm on 29 March 2019.