TRADE talks between Britain and the European Union are in a “difficult phase,” Business Secretary Alok Sharma admitted today after a government source suggested that hopes of a deal were “receding.”

If an agreement is not reached this month, Britain’s trade with the EU will be governed by World Trade Organisation rules after the Brexit transition period ends on December 31.

Mr Sharma acknowledged that there are “a number of tricky issues” still outstanding, but he stressed that the government’s negotiating team is working hard to strike a deal.