May still believes Britain will win a good Brexit deal - spokesman

Mrs May and Dr Fox

Liam Fox says the chance of a no-deal Brexit is growing, blaming the "intransigence" of the European Commission.

The prospect of a hard Brexit increases uncertainty for United Kingdom businesses and is likely to continue pressuring sterling.

United Kingdom stocks fell modestly on Monday as the U.S.

Fox said there's now a 60 percent likelihood of a no-deal outcome as the clock ticks down to Britain's scheduled departure in March.

The document, leaked to The Guardian daily and marked as "official sensitive", warned that police officers would face a "significant loss of operational capacity" if the United Kingdom left the European Union without a deal and urged Home Secretary Sajid Javid to draft contingency plans.

He said Mr Barnier had dismissed the UK's proposals in the Chequers plan thrashed out by Theresa May and the Cabinet simply because "we have never done it before".

"It's essential that "no deal" looks credible to the EU", Fox said.

It's not a prospect business and markets relish, though.

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Fox's interview follows on from a warning on Friday by Mark Carney, Governor of the Bank of England, who said that the likelihood of a No Deal is "uncomfortably high" and that everything should be done to avoid it.

The saga over Brexit has come to dictate the pound's fortunes as fears mount about the impact it would have on Britain's trade.

Meanwhile, Downing Street issued a statement expressing confidence in the UK's ability to conclude a deal based on the prime minister's White Paper, calling the possibility of a no deal Brexit an "unlikely event". Hammond told a meeting of City executives that while the bloc will initially minimize disruption, it's likely to pass regulation over time that hampers United Kingdom banks, according to the paper.

May's office said in an emailed statement Sunday that while the government is "confident" of securing a deal, "it is the job of a responsible government to prepare for all scenarios".

The Prime Minister held talks with French President Emmanuel Macron on Friday, cutting short her holiday to visit his summer retreat. May to have the "backbone and confidence" to back Britain in the negotiations with the EU.

The worldwide trade secretary and Brexiteer put the chance of failing to come to an agreement at "60-40".

"Our negotiating advantages are meaningless without leadership courageous enough for the task", wrote Patel, often touted in the United Kingdom press as a potential contender in any future leadership contest to succeed May.

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