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Ministers are planning new legislation that would override a key part of last year's EU withdrawal agreement.
Move threatens to collapse talks that PM has said must be completed within weeks.
The UK's chief Brexit negotiator has said the government is not "scared" of walking away from talks without a trade deal ready to come into force in 2021.
Pessimism in London and Brussels over the prospect of a deal amid deadlock over state aid and fisheries.
Meeting of EU leaders this month will instead focus on post-Covid recovery and China relations.
Boris Johnson has admitted the UK is currently heading for a no deal Brexit, with progress now “very difficult” as the two sides refuse to compromise.
Spokesman for Boris Johnson says hopes of meeting deadline in December are dwindling
PM vowed to ‘take back control’ – but dithering has handed advantage to countries on other side of the table, Institute for Government says.
No 10 had ‘change of attitude’ after pressure from business, says commissioner.
What’s Happening? The fifth round of negotiations between Britain and the European Union ended with both sides saying an agreement is way off.
The British government is planning to withhold power to control state aid from Scotland and Wales when the Brexit transition ends, the Financial Times reported.
EU Brexit negotiator Michel Barnier complained of lack of respect and engagement by UK
German leader signals trade compromise less likely as she hardens tone on no-deal Brexit.
Michel Barnier accuses UK of "backtracking" on commitments but government sources accuse EU of offering only a "binary choice".
Leaked copy of plan suggests UK will be told to match EU on workers’ rights, environmental protection and state aid
Pascal Canfin says UK’s zero tariff demands will be rejected, amid conflicting messages.
Brussels firms up position and bloc’s unity before tough talks on future relationship with UK.
‘Prepare for the worst’ EU officials tell business after Sajid Javid’s FT interview.
IPPR thinktank rebuts claims that a leftwing Labour government’s hands would be tied by Brussels. / Britain could triple state aid spending to industry without breaching EU rules, according to a study that compares government subsidies to promote economic growth across Europe.
Tánaiste Simon Coveney has told the Dáil that the imposition of any tariffs on agricultural products between the UK and Ireland would be very damaging and the Government would prepare a detailed response to such actions.
EU agriculture commissioner Phil Hogan ‘satisfied’ Brussels can provide aid in ‘any exceptional circumstances’.