David Davis returns to Brussels for Brexit talks as PM prepares to meet with business leaders

Over the last few days, negotiators were due to set out their positions on a range of issues including the rights of EU citizens, the border with Northern Ireland and membership of Euratom.

However, the agenda has reportedly been dominated by questions about Britain’s financial obligations to Brussels, which some have estimated could amount to around £66bn.

This prompted warnings it would be “very dangerous” for the EU to stall talks over the so-called divorce bill, as well as accusations that European officials are attempting to “punish” Britain for leaving.

Mr Davis visit comes ahead of the first meeting of a new business council set up by Theresa May to provide a “direct link to business” on the Government’s Brexit strategy.

The Prime Minister is expected to chair today’s session alongside the Chancellor Philip Hammond and Business Secretary Greg Clark, where they will meet representatives of the CBI, the FSB, National Grid and BAE.

A government spokesman said the council will specifically focus on Brexit, providing regular business insight on key issues arising through the ongoing negotiations.

They added that this will in turn “support the Government to get the best possible deal as the UK leaves the EU”.

Mr Davis faced criticism at the beginning of the week after taking part in less than an hour of discussions in Brussels before returning to Westminster. But the Haltemprice and Howden MP will meet with his EU counterparts again today, where he will provide an update on the second round of formal talks.

Negotiating teams have been involved in discussions about the UK’s offer on the future right’s of EU citizens and ways to avoid a hard border between Northern Ireland and the Republic. However, reports have emerged throughout the week that much of the talk has focussed on the UK’s financial obligations to the EU when it leaves, with officials said to be prepared to “stall” negotiations until the UK sets out its initial offer.

Such claims yesterday prompted the German MEP Hans-Olaf Henkel to accuse the European Union negotiator Michel Barnier of trying to “punish” Britain to prevent other countries from leaving. The former Brexit Secretary David Jones went on to tell the website Politico that it would be “very dangerous” for the EU to play games over the divorce bill because it increases the chance of a “no deal” scenario.

Government sources dismissed suggestions that talks had been impeded by rows over payments. A DExEU spokesman said: “We have already set out that we recognise the rights and obligations we have to the EU and that they have similar obligations to the UK.

“These are now a matter for the negotiations.”