EMMANUEL Macron has suggested Britain’s EU divorce bill should be near £50 billion, saying Theresa May’s initial offer of £20bn was “not even halfway there”.

The French President insisted "much work needs to be done," adding: “I would say we are far from having reached the necessary financial commitments before we can open phase two. We are not halfway there."

While the Prime Minister dodged questions about the size of the country’s financial liability, she stressed how officials were going through the issues "line by line" to decide what was owed.

Mrs May made clear the size of a "full and final settlement" would not emerge until agreement was reached on all aspects of Brexit, yet she was said to have privately acknowledged the UK would have to increase its initial offer.

Her comments came after the EU27 took just 90 seconds to confirm that progress on the Brussels talks had not been sufficient enough to move onto the second phase about trade and transition.

However, the PM left the Belgian capital buoyed by their decision to begin internal scoping about trade talks and by remarks from Angela Merkel and Donald Tusk, who pointed to how negativity about the process had been overblown, progress had been made and that talks on trade and transition could possibly begin at the European Council in December.

Yet EU leaders stressed that this would only happen if there were more concessions from Britain not only on the divorce bill but also on the Irish border and citizens’ rights.

Mrs May told reporters at the post-summit press conference that she was "ambitious and positive" for Britain's negotiations with the EU but admitted there was still "some way to go" in the talks.

Earlier, the German Chancellor gave an upbeat assessment, saying the negotiations were making progress "step by step".

"I have no doubt that if we are all in clear minds...We are going to achieve a good outcome," Mrs Merkel declared, adding: "As far as I am concerned, I don't hear any reason to believe that we are not going to be successful."

Mr Tusk bemoaned how reports of deadlock between the EU and UK had been "exaggerated".

He added: "While progress has not been sufficient, it doesn't mean there has been no progress at all. The negotiations go on and we will continue to approach them positively and constructively. I hope that we will be able to move to the second phase of our talks in December."

Mark Rutte, the Dutch Prime Minister, said the EU27 needed "more meat on the bone" of Britain's exit payment, following Mrs May's promise in a speech in Florence last month that the UK would honour financial commitments made as an EU member.

On the issue of a no-deal scenario, Mr Macron suggested the UK might be “bluffing” while Jean-Claude Juncker, the European Commission President, declared: “I hate a no-deal scenario...I want a fair deal."

But senior Tory Brexiteer Bernard Jenkin warned the PM that she should not sign up to a deal at any price.

"It is only reasonable that we should consider helping the EU out as we leave the EU and withdraw our contributions but if this becomes much more expensive than envisaged it is simply not worth it."

Meanwhile, pressure was building on Mrs May to secure agreement on a Brexit transitional deal by the end of the year.

Carolyn Fairburn, the CBI's Director-General, noted how "for firms across Europe, warm words are not enough".

She went on: "Decisions and certainty are now needed to protect jobs and investment on both sides. A transition deal by year end is top of the list. We urge the EU to put people before process and take a pragmatic approach to recognising sufficient progress.

"And the UK must continue to seek to unblock discussions. Where agreement is within touching distance, make the final step.”

She added: "While all effort and goodwill must go into securing the new partnership, firms across the EU have no choice but to prepare for all outcomes, including no deal.”