MEPs deliver blow to Brexit talk hopes

Members of the European Parliament voted to back a delay in the next phase of Brexit talks until there is a "major breakthrough", as "sufficient progress has not yet been made" in agreeing a divorce deal.

MEPs voted overwhelmingly to demand a post-Brexit trade deal with the EU should only be discussed once the terms of separation have been largely agreed.

The motion accused the UK government of having “seriously impeded” negotiations over the divorce bill because of a lack of “clear proposals”, despite Theresa May's more conciliatory speech in Florence last month.

Analyst Joshua Mahony at IG said the motion dashed hopes that May’s €20bn offer to cover transitional costs could kick-start negotiations.

"If it wasn’t clear from the outset that the completion of an all-encompassing trade deal was highly unlikely within the two-year timeline, it is now looking a near impossibility.

"With Conservative party infighting rife over exactly what Brexit this country needs, it looks highly unlikely that we will see negotiations move forward with the EU as politicians seek to score points as they line up for May’s job."