The EU is reportedly demanding guarantees the UK will compensate the bloc if a future government reneges on the Brexit “reset” agreement Keir Starmer is currently negotiating.

The termination clause is a stark reminder of the painful and costly divorce in which the EU set up a colossal €5.4bn (£4.7bn) fund to help its member states cope with the disruption caused by the UK’s exit in 2020.

Anand Menon, the director of UK in a Changing Europe, said: “We shouldn’t be surprised that the EU is playing hardball. After all, they have decided that we need these agreements more than they do. As such, they will extract every last concession.”