Downing Street insisted Brexit trade talks were entering the final hours last night and it was increasingly likely that the UK would leave the bloc without a deal after the EU tried to mount a last-minute ambush over fishing rights.
Government sources said it was widely expected that the negotiations would conclude one way or another before Christmas, but that no agreement was imminent.
No 10 was infuriated by an ultimatum from EU chief negotiator Michel Barnier that would have allowed Brussels to impose lightning tariffs on London if the Government restricted access to UK fishing waters.
A source said: Talks have become stuck due to unreasonable EU demands on areas such as subsidies and fisheries.