Britain's €20bn Brexit divorce bill offer is "peanuts", the President of the European Parliament has warned.

Antonio Tajani said the situation was "not good" and "we need to know what the UK wants to do" as he restated Brussels' demands for a financial settlement which could be as high as £53 billion.

In comments that will anger Eurosceptic MPs, Mr Tajani said the UK Government was "not realistic" in its approach to the financial settlement and echoed Margaret Thatcher's language when she secured the British rebate.