EU's Donald Tusk suggests extra Brexit summit in November

My Brexit plan or crash out of EU, says Theresa May

"I think that the alternative to that will be not having a deal", May told BBC TV, adding she was confident of getting a good agreement she thought parliament would ultimately approve.

May is calculating that, faced with a stark choice between an imperfect agreement and the unknown territory of "no deal", many lawmakers will grudgingly back her proposals.

Mr Johnson has always been critical of Mrs May's Chequers plan, resigning in July alongside then-Brexit Secretary David Davis.

Khan said the "sensible thing" would be for the prime minister to call a general election if she did not have support for any Brexit deal.

That has led to worries that Britain is heading for a "no-deal Brexit" that would see it revert to World Trade Organisation rules on trade and force it to pay tariffs on goods imported from the EU. As part of the EU, Britain now enjoys the freedom of goods, services, money and people to move across borders with 27 other countries in the region.

"We will discuss how to organise the final phase of the Brexit talks, including the possibility of calling another European Council in November", he added, in an invitation letter sent to the EU's 28 leaders ahead of a summit on Wednesday in Austria.

Diane Dodds MEP said it was unclear whether Brussels' proposals would represent a serious departure from the EU's "dogmatic" stance or were "simply meant to dress up existing elements of its plan".

Last week a group of Brexiteer Tory MPs said a hard border could be avoided by using "established" technology and "modifying" existing arrangements.

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Reports suggest that the European Union is preparing to accept use of technology to avoid the need for new border infrastructure in Ireland and checks on goods being shipped between Northern Ireland and the rest of the UK.

On Sunday Brexit-supporting Environment Secretary Michael Gove said the Chequers plan was the right one "for now".

Theresa May said on Sunday she was focused on her plan for a relationship with the European Union based on a common rulebook for all goods, and that she was "a little bit irritated" by constant speculation about her position.

Brussels and London have failed to resolve "fundamental" aspects of Brexit and this could leave London defaulting to World Trade Organisation (WTO) tariffs, the International Monetary Fund said in its annual outlook on the United Kingdom economy.

However, pro-Brexit Conservative MP Andrew Bridgin poured scorn on the IMF's analysis saying that the IMF had been wrong before, and were so again: "Christine Lagarde, the same IMF, who told us that if we even voted we would be in an immediate recession, it's the same IMF that didn't foresee the economic crash in 2008".

According to a Comres survey, 50% of British adults feel the overall impact will be negative, whereas 41% think it will be positive.

BBC Panorama, Inside No 10: Deal or No Deal? is on Monday 17 September at 20:30 BST on BBC One as part of a week of in-depth coverage across the BBC to mark Brexit: Six Months to Go.

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