THE EU’S chief negotiator has hit back at Liam Fox for accusing him of refusing to budge over Brexit.

Michel Barnier said he was working ‘day and night, 24/7 for a deal’, after the international trade secretary said his ‘intransigence’ left the chance of a deal at just 40 per cent.

Mr Fox blamed the ‘ideological purity’ of Brussels for wrecking Britain’s chances after it dismissed Theresa May’s Chequers plan for a single market in goods but not services.

But Mr Barnier’s spokesman said he was ‘working constructively, day and night, to reach a deal with the UK’.

He added: ‘The chief negotiator is, as he has always been by the way, based on the negotiating position agreed by the 27 member states.’

Former Brexit secretary David Davis said the EU was making a ‘massive miscalculation’ if it thought Britain was not prepared to walk away without a deal.

But Mrs Mayhem insisted a deal is still the ‘most likely outcome’. Her spokesman said: ‘Reaching a good deal is not only in the interests of the UK, it is in the interests of the EU and its 27 members.’

The prospect of a no-deal Brexit saw the pound fall to below $1.30, an 11-month low, yesterday. Senior Brexiteer Sir Bernard Jenkin compared the ‘diet of gloom and alarm’ with the millennium bug.

Meanwhile, Labour’s Brexit policy will be challenged by its members. More than 200 constituency branches are to push for a second referendum at the party’s autumn conference.

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