Both the UK’s lead negotiator David Frost and his EU counterpart Michel Barnier commented that while it was still possible to get an agreement and negotiations would continue next week, no deal at the end of the transition period was very much a possibility.

A further week of talks are scheduled for the middle of August, at which point a decision is likely to be made on whether the gap can be closed or whether preparations need to intensify for trading without a trade deal.

The UK’s lead negotiator sounded more confident, saying that a deal could still be reached by November, while the EU's Michel Barnier highlighted that there was no progress on the key issues of state aid and fishing, and that talks could fail unless there is a change in the UK position.