The UK could risk its strong sovereign credit rating if it failed to foot the Brexit bill in a no deal scenario, Moody’s ratings agency has warned.

Czech, German and Italian politicians support European commission line that Britain must agree to pay up before talks. EU member states are backing a European commission demand that trade talks can only start once Britain has agreed to pay a hefty Brexit bill, despite fears of a backlash from Theresa May.

Boris Johnson has been accused of deceiving voters after insisting Britain would not pay an expected £50bn Brexit “divorce bill” unless the EU started trade talks. A senior EU source said the Foreign Secretary was hoodwinking the public about “the realities of Brexit” – insisting leaders were “united” in the view that the bill must be settled first.

German chancellor says UK cannot have same rights as member states nor negotiate trade relations before agreeing to pay its bill. Angela Merkel has said British politicians are still living under the “illusion” that the UK will retain most of its rights and privileges once it leaves the European Union.

The German government is encouraging Britain to agree a mathematical formula for calculating its European divorce settlement rather than settling on a precise figure in an attempt to avoid a looming clash that risks derailing Brexit talks.

A draft plan – apparently obtained by a Dutch newspaper – threatens a long legal battle to grab back what the EU regards as the UK’s liabilities, if Theresa May refuses to pay up