THERESA May claimed yesterday that real and tangible progress has been made at the Brexit negotiations – while the EU denied things are moving forward.

Both sides claimed “the ball is in their court” as frustrations grew.

The Prime Minister told the House of Commons new policy papers from her team will pave the way for the UK to operate as an “independent trading nation” after Brexit, even if no trade deal is reached with Brussels. The white papers on post-Brexit trade and customs arrangements were released as May insisted “real and tangible progress” had been made in the complex negotiations since her high-profile speech in Florence last month.

However, there was contradiction from Brussels as the European Commission’s chief spokesman insisted the UK must compromise further in order to move talks on to the future trade relationship this month.

Margaritis Schinas said: “There is a clear sequencing to these talks. There has been so far no solution found on step one, which is the divorce proceedings, so the ball is entirely in the UK court for the rest to happen.”

According to May, it is Brussels that must show “flexibility” ahead of next week’s European Council meeting, when the leaders of the 27 remaining EU nations will decide whether sufficient progress has been made on the divorce deal to move on to the second phase.

May said: “A new deep and special partnership between a sovereign United Kingdom and a strong and successful European Union is our ambition and our offer to our European friends.

“Achieving that partnership will require leadership and flexibility, not just from us but from our friends, the 27 nations of the EU.

“As we look forward to the next stage, the ball is in their court, but I’m optimistic it will receive a positive response, because what we are seeking is not just the best possible deal for us, but I believe that will also be the best possible deal for our friends, too.”

The new white papers discuss a range of possibilities on VAT, customs and tax, taking in the potential for crashing out without a deal.

Rejecting established models including membership of the European Economic Area or a Canada-style agreement, May said these would “benefit none of our economies” and insisted a “unique” solution is needed.

She stated: “While I believe it is profoundly in all our interests for the negotiations to succeed, it is also our responsibility as a government to

prepare for every eventuality, so that is exactly what we are doing.

“These white papers also support that work, including setting out steps to minimise disruption for businesses and travellers.”

The trade white paper also confirmed Britain will not be able to bring into effect any free trade agreements with other countries during the time-limited transition period sought by May.

Instead, it would pursue trade negotiations with other countries during the transition, which the government expects to last around two years.

Legislation will also be introduced to “transition” all existing EU trade agreements and preferential arrangements with other countries into domestic law after leaving the bloc. This will help maintain “the greatest amount of certainty, continuity and stability in our trade and investment relationships for our businesses, citizens and trading partners”, the white paper said.

Meanwhile, the Customs Bill will legislate for a new “standalone” customs regime after Brexit, regardless of any deal with the EU, and amend the VAT and excise duty regimes so that they can continue to function effectively once the UK has left.

Turning to Northern Ireland, May said work on drafting joint principles for preserving the Common Travel Area has now begun and ruled out any “physical infrastructure” at the border with the Republic of Ireland.

The Prime Minister said: “We owe it to the people of Northern Ireland, and indeed to everyone on the island of Ireland, to get this right.”

Speaking more generally, she stated: “While of course progress will not always be smooth, by approaching these negotiations in a constructive way, in a spirit of friendship and co-operation and with our sights firmly set on the future, I believe we can prove the doomsayers wrong.

“I am determined to deliver what the British people voted for and to get it right. That is my duty as Prime Minister, it is our duty as a government and it is what we will do.”

However, Labour leader Jeremy Corbyn retorted: “Sixteen months on from the referendum, no real progress has been made.

“What on Earth has the government been doing all this time?”