A "dramatic" fall in car production and an easing of stockpiling by manufacturers meant the economy shrank in April, official figures show.

Negotiations between the UK and Canada on a post-Brexit trade deal have broken down after nearly two years, following a row over beef and cheese. / Canada has been pushing for the UK to relax a ban on hormone-treated beef, which its producers say in effect shuts them out of the British market.

Ministers were warned of the dangers of the EU trade deadline two years ago. Now, up to 200,000 jobs and £11bn worth of UK car exports could be in jeopardy.

A £5 billion EU continuity trade deal with Mexico, hailed by Whitehall as an “Aztec Brexit Boost”, has become obsolete – after the EU signed a more generous and comprehensive deal between its 27 members states and Mexico.

Stellantis, which also owns Citroen, Peugeot and Fiat and employs more than 5,000 people in the UK, says its UK investments were in the balance due to terms of Brexit trade deal.