Theresa May has demanded new proposals from the EU to break the Brexit impasse after European leaders dismissed her Chequers proposals as unworkable,
In an unexpected statement from Downing Street, Ms May said both sides "remain a long way apart" but she was committed to getting a good deal.
She said she has "treated the EU with nothing but respect'' and "the UK expects the same'', adding: "A good relationship at the end of this process depends on it.''
Ms May has come under mounting pressure to abandon her Chequers plan after it was widely criticised by EU leaders and many of her own Eurosceptic MPs.
See below for live updates
Live Updates
16:43
Penny Mordaunt, the international development secretary, says the EU's response to Theresa May has increased public support for Brexit and people's willingness to leave without a deal...
16:26
Theresa May's DUP allies have told her to stand firm in the face of "disrespectful, intransigent and disgraceful behaviour" by the EU.
Party leader Arlene Foster said: "The Prime Minister is right to stand firm in the face of disrespectful, intransigent and disgraceful behaviour by the European Union. The United Kingdom will not be treated in such a manner.
I welcome today’s clear statement by the Prime Minister and in particular that Her Majesty’s Government will not countenance any new regulatory or customs barriers between Northern Ireland and the rest of the United Kingdom.
As per Article 50 of the Joint Report, any new regulatory barrier would be a matter for the Northern Ireland Assembly where the DUP would veto any attempt to undermine the economic or constitutional integrity of the United Kingdom.
Our red line from day one of these negotiations has been that there can be no border between Northern Ireland and Great Britain. We continue our intensive work with the Government to ensure that we leave the EU in a manner which protects the constitutional and economic integrity of United Kingdom and enables us to take back control of our laws, borders and money."
I welcome today’s clear statement by the Prime Minister and in particular that Her Majesty’s Government will not countenance any new regulatory or customs barriers between Northern Ireland and the rest of the United Kingdom.
As per Article 50 of the Joint Report, any new regulatory barrier would be a matter for the Northern Ireland Assembly where the DUP would veto any attempt to undermine the economic or constitutional integrity of the United Kingdom.
Our red line from day one of these negotiations has been that there can be no border between Northern Ireland and Great Britain. We continue our intensive work with the Government to ensure that we leave the EU in a manner which protects the constitutional and economic integrity of United Kingdom and enables us to take back control of our laws, borders and money."
16:10
Liberal Democrat leader Sir Vince Cable has said the Chequers plan is now "dead as a Dodo".
He tweeted: "The Chequers plan, dead as a Dodo but killed in London by Tory fundamentalists not in Salzburg.
"Instead of petulance just accept that red lines need redrawing to stay in customs union."
16:00
International development secretary Penny Mordaunt has said that she believes the public would be "content" to leave the EU without a deal.
She tweeted: "Speaking to constituents today, it is clear that EU's behaviour in recent days is increasing support for us leaving the EU.
"People still want a deal but content to go without one, even folk who voted remain. Important statement from PM re rights for EU migrants in a no deal scenario."
15:27
FULL STORY: Theresa May labels EU conduct "unacceptable" and demands respect for UK
Brexit: Theresa May labels EU conduct 'unacceptable' and demands respect for UK
The prime minister also unilaterally guaranteed the rights of EU citizen living in the UK even in the event of no-deal
15:15
After the Lib Dems calls for Theresa May to recall Parliament, the Lords Speaker has rejected a request from Labour peer Lord Adonis for the Lords to be recalled to discuss Brexit.
14:51
Jeremy Corbyn has responded to Theresa May's statement and accused both the government and the EU of playing "political games". The Labour leader said:
“Theresa May’s Brexit negotiating strategy has been a disaster. The Tories have spent more time arguing among themselves than negotiating with the EU.“From day one, the prime minister has looked incapable of delivering a good Brexit deal for Britain.“The political games from both the EU and our government need to end because no deal is not an option.”
14:41
The Liberal Democrats have called on Theresa May to recall Parliament. The party's Brexit spokesperson, Tom Brake, said:
“The prime minister has had the most humiliating European summit in recent memory and returned with a tattered Chequers deal, making a no-deal Brexit more likely than ever.
“Two years down the line and the only consensus the PM has made across Parliament and the EU is that Chequers is unworkable.
“Instead of pontificating to television cameras, May must now recall Parliament to explain how she got the country into this terrible mess, what her plan is to get us out of it, and when we can have a people’s vote and an exit from Brexit.”
14:34
The pound slumped on the back of Theresa May's update, as the chances of a no-deal Brexit increase...
Pound sterling slumps as Theresa May rules out Brexit compromise over Irish customs
The currency fell to $1.3095 as the Prime Minister delivered a special statement in Downing Street after her Chequers Brexit plan was rejected by EU leaders in Salzburg
14:33
Where does Theresa May's statement leave matters? Well, virtually where they were yesterday. The prime minister did not say anything that could be deemed a game-changer, instead doubling down on her Chequers plan and showing no intention to budge.
We wait to see how the EU responds, but it has repeatedly made clear that it will not accept the UK's current proposals.
There's no doubt that the prospects of Britain crashing out the EU without a deal have increased this week. The two sides are further apart than ever, even though 80 per cent of a deal has already been agreed. But an agreement is clearly in the interests of the both the UK and the EU, so don't be surprised if there is some movement towards a compromise in the weeks to come. With a deal needing to be agreed by the end of the year though, both sides will know that time is rapidly running out...
14:27
May admitted Brexit negotiations were at an "impasse". She said:
"Yesterday Donald Tusk said our proposals would undermine the single market. He didn’t explain how in any detail or make any counter-proposal. So we are at an impasse."
She laid the blame for the deadlock firmly at the EU's door, saying:
"Throughout this process, I have treated the EU with nothing but respect. The UK expects the same. A good relationship at the end of this process depends on it."At this late stage in the negotiations, it is not acceptable to simply reject the other side’s proposals without a detailed explanation and counter proposals."So we now need to hear from the EU what the real issues are and what their alternative is so that we can discuss them. Until we do, we cannot make progress.In the meantime, we must and will continue the work of preparing ourselves for no deal."
14:21
So what was new in Theresa May's statement? Two things:
1. She guaranteed the rights of EU citizens in the UK even in the case of an no-deal Brexit.
2. She also offered a glimpse of what the UK's new proposal for a Northern Ireland customs backstop will look like. May re-iterated that the UK will not accept new customs checks between Northern Ireland and Great Britain but hinted that it could accept new regulatory checks - IF the Northern Ireland Assembly agrees to it.
The spanner in the works, of course, is that the Assembly has not sat since the start of last year after power-staring collapsed. Could restoring devolution in Northern Ireland now be crucial to finalising a Brexit deal?
14:17
May says denying the legitimacy of the Brexit vote "threatens public trust in our democracy".
She says:
"No-one wants a good deal more than me, but the EU should be clear: I will not overturn the result of the referendum, nor will I break up my country."
Hurling the ball into Brussels court, she finishes by saying:
"We need serious engagement on resolving the two big problems in the negotiations, and we stand ready."
And with that she turns and leaves the room.
14:15
May promises that the rights of EU citzens living in the UK will be protected even in the case of a no-deal Brexit. She tells them:
"You are our friends, our neighbours, our colleagues. We want you to stay."
She also tries to reassure the people of Northern Ireland, saying:
"We will do everything in our power to prevent a return to a hard border."
14:11
Theresa May says keeping Northern Ireland in the customs union is "unacceptable".
She says the UK will lay out an alternative back-stop arrangement for the Northern Ireland border that will stick to her promise that there should be no new regulatory checks in the Irish Sea unless agreed by the Northern Ireland Assemby.
Of the EU she says:
"We cannot accept anything that threatens the integrity of our union, just as they cannot accept anything that threatens the integrity of theirs."
She says she has treated the EU "with nothing but respect" and that the UK deserves the same.
May says it is "not acceptable" for the EU to simply reject the UK's proposals without explanation or counter proposals. She says Brussels must explain "what the real issues are and what the alternative is".
14:07
May says there are two alternative to her Chequers plan.
One - the EU's plan - would see the UK "abide by all the EU rules" and accept "uncontrolled migration from the EU"
This, she says, would "make a mockery of the referendum we had two years ago"
She says the other option would see "Northern Ireland permanently separated economically from the rest of the UK".
She says Parliament has unanimously rejected this idea and that it is something she will "never agree to" and no prime minister would ever agree to:
"If the EU believe I will, they are making a fundamental mistake."
14:04
May says she has always said "negotiations would be tough and they were always bound to be toughtest in the final straitght".
14:03
Here we go....
14:03
We're now getting live footage from the room in Downing Street where Theresa May will speak, suggesting the power has been restored and the statement is imminent...
13:58
It doesn't sound like Theresa May is about to announce a change of strategy or suspend Brexit negotiations, given what her Brexit secretary, Dominic Raab, has just told the BBC...
He told Politics Live there was no "credible alternative" to the Chequers plan and criticised the approach of EU leaders at the Salzburg summit, saying:
"It did not feel like the reciprocation of the statesmanlike approach that she [May] has taken".
"We have been rebuffed on our plans without any coherent explanation as to why."
Raab said the government would "hold our nerve, stay calm and keep negotiating in good faith".
The Independent has launched its #FinalSay campaign to demand that voters are given a voice on the final Brexit deal.
Sign our petition here
