Brexit negotiations reach deadlock over 'disturbing' divorce bill

Brexit talks between Britain and the EU have not made "massive steps forward", according to the EU's chief negotiator. The announcement comes at the end of the fifth round of talks and casts doubt on the chances of trade talks starting before a key EU summit.

Speaking from Brussels, the EU's chief Brexit negotiator, Michel Barnier, said: "We worked constructively. We clarified certain points. Without making massive steps forward."

Stood alongside the UK's Brexit Secretary David Davis, Barnier said that Theresa May's Florence Speech had given "momentum to these negotiations" but that there was a "disturbing" deadlock over the size of the bill the UK pays to the EU.

He also stated that he would not recommend to EU leaders that talks enter the next stage.

David Davis said that "these issues are not easy" but the government was taking a "pragmatic approach" to help breach the deadlock.

But in a breakthrough, Davis was able to offer clarity to EU citizens living inside the UK by confirming that EU nationals who already have permanent residence will be able to exchange for settled status without a need for a new application

Concerns remain over whether the two sides will be able to reach a deal, but Barnier warned that "no deal would be a bad deal" and that the EU would be prepared for all eventualities.

The fifth round of talks were the last before a major EU summit that will be taking place in December. It is there that EU leaders will decide whether enough progress has been made to commence trade talks.

During Wednesday's PMQs, Theresa May indicated that she was still pushing for an exit on time at the end of March 2019.