Britain should put the deadlocked Brexit negotiations with the European Union on the backburner and open trade talks with rest of the world, according to a radical plan backed by Boris Johnson and David Davis.

The 140-page plan from the Institute of Economic Affairs recommends seeking global trade deals now to force the EU to give Britain a better trade deal after leaving the EU next March.

The report - titled "Plan A+: Creating a prosperous post-Brexit UK" - will offer a way out for Theresa May after her humiliating Salzburg summit where EU leaders said her Chequers deal was unworkable.

By opening talks now the UK could accelerate the signing of trade deals after Brexit which could be worth as much as 7 per cent on Britain’s gross domestic product by the middle of the 2030s.

Bi-lateral talks could be opened primarily with America, and possibly India and China. The IEA has also obtained a legal opinion that says Britain has the right to negotiate - but not implement - new deals before leaving the EU.