Updated 12:05

The British Brexit Secretary has warned the EU that the UKs “willingness to compromise is not without limits."

Dominic Raab used speech to the Tory conference today to insist that the UK is ready to leave the EU without a deal if necessary.

It comes amid further splits in UK Prime Minister Theresa May’s Conservative Party over her ‘Chequers’ plan for exiting the EU.

Yesterday, her former Foreign Secretary called the plan "deranged" and "preposterous."

'Pragmatic not dogmatic'

In his speech Mr Raab said: "My approach to Brexit is pragmatic, not dogmatic."

"Our proposals would deliver a historic agreement that provides a roadmap out of the EU and a final deal that will be good for the whole country,” he will say.

"A deal that delivers on the referendum, because that's our democratic duty. A deal that manages the risks of Brexit, because that's our responsibility.

"A deal that grasps the opportunities of Brexit, because we're at our best when we're optimistic about the future. And a deal that protects our precious union, because we are the Conservative and Unionist Party.

"But our willingness to compromise is not without limits. We are leaving the European Union in fact, not just in name.

"If we can't obtain a deal that secures that objective... if an attempt is made to lock us in via the back door of the EEA and customs union... or if the only offer from the EU threatens the integrity of our union then we will be left with no choice but to leave without a deal."

UK Chancellor of the Exchequer Philip Hammond, 01-10-2018. Image: Stefan Rousseau/PA Wire/PA Images

'No-deal'

Meanwhile, the country’s chancellor Philip Hammond has insisted the UK economy will able to cope with a ‘no-deal’ Brexit.

He said Britain has the fiscal capacity" to walk away from the EU without an agreement.

"Of course we must prepare for a no-deal,” he said. “You should never go into any negotiation unless you're prepared to walk away."

He added however that "no-deal would not be a good outcome."

Responding to Mr Johnson’s comments, the UK Chancellor said that his Tory colleague could not do “grown up politics” and has no “grasp of detail" on complex subjects like Brexit.

Chequers

The EU has warned that the Chequers proposals in the current form will not work – as they threaten the integrity of the EU single market.

European Commission President Donald Tusk has warned that the “moment of truth” in the talks will be at the upcoming October Summit of EU leaders.

The EU has warned that a legally-binding backstop solution on the Irish border must be agreed at the summit in order for talks to move forward to future trade.

It is hoped the UKs withdrawal agreement can then be agreed in November.

However, Theresa May has insisted there can be no new regulatory boundaries between Britain and Northern Ireland – claiming that this would threaten the constitutional integrity of the UK.

She left the door open to such an arrangement in the future – provided the devolved Government at Stormont agrees.

The executive has not sat for over a year and a half – and the Democratic Unionist Party has threatened to veto any such proposal even if the political impasse can be broken and devolved Government restored in Northern Ireland.

'Dogmatic not pragmatic'

Responding to Mr Raab’s speech this morning, the UK Labour shadow Brexit minister Paul Blomfield said: "Dominic Raab is in denial. His approach is dogmatic, not pragmatic.

“The Chequers proposals have been rejected by his own party and by the EU,” he said.

“Chequers cannot command support at Conservative conference, let alone in parliament or across the country.”