Boris Johnson has said the Brexit "deal on the table is not at the moment right for the UK", and there is "a strong possibility" of a no deal.
The Prime Minister has chaired an additional Cabinet meeting today following his dinner meeting with Ursula von der Leyen in Brussels yesterday, in which he said they agreed with his assessment.
Speaking to journalists afterwards, he said: "The deal on the table is really not at the moment right for the UK."
He added: "It was put to me that this was kind of a bit like twins and the UK is one twin the EU is another and if the EU decides to have a haircut then the UK is going to have a haircut or else face punishment. Or if the EU decides to buy an expensive handbag then the UK has to buy an expensive handbag too or else face tariff.
"Clearly that is not the sensible way to proceed and it’s unlike any other free trade deal."
While he has told negotiators to "keep going" there is the "the possibility, the prospect" of leaving without a deal.
"We’re not stopping talks, we’ll continue to negotiate but looking at where we are I do think it’s vital that everyone now gets ready for that Australian option," he added.
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