Channel 4 News: EU threatens to take UK government to court over proposed changes to Brexit deal

"The real weapon of torture is the lack of a trade agreement, the economic impact on Britain, the psychological impact on the British economy of there not being any agreement, the impact on financial markets, which will react very, very negative," said Charles Grant, director of the CER.

"The impact on the psychology of British businesses, knowing they're being cut off from the largest trading market, permanently cut off.

"The huge prospect of chaos at the borders, friction at the borders, lack of access to the EU single market in any respect, lack of ability to travel easily from one part of Europe to another," (from 3 mins 45).