Ms Truss, who took charge of negotiations with Brussels following Lord Frost's resignation, warned the UK would unilaterally overhaul the rules if the bloc refused to accept a "pragmatic compromise". She insisted she was ready to trigger Article 16, an escape clause in the Brexit withdrawal deal.

       She said: "I will not sign up to anything which sees the people of Northern Ireland unable to benefit from the same decisions on taxation and spending as the rest of the UK."

       But Joao Vale de Almeida, the EU's ambassador to London, said: "We're not too impressed." Talks resume on Thursday.

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