The UK’s ability to secure an exit deal from the EU is dwindling. The informal EU summit in Austria has humiliated Theresa May as EU leaders rejected her Brexit proposals.

EU leaders said they would push for a Brexit deal next month. However, they warned May that she must compromise on trade and the Irish boarder.

European Council president Donald Tusk did highlight some positive elements to the Chequers plan. But, he fundamentally deemed it unacceptable in its present form.

That said, all sides have emphasised their determination to reach a deal before the Brexit focused summit in November.

Dominic Raab, the Brexit secretary, told the BBC’s Politics Live:

“We’ve revved up the motor of these negotiations, I’ve been out there a lot more frequently to get motoring, to make progress and the EU have just yanked up the handbrake.”

“For the negotiations to go forward they’re going to have to take their hand off the handbrake.”

The Times has set out the five options that May can now pursue. The most likely of these options is for the PM to keep going and persist. But they also include walking away with a no-deal and the least likely option of resigning.

The PM has released a statement on the Brexit talks:

“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.”

“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.”

The pound is now on course for its biggest one day drop this year against the dollar.