Britain had been widely expected to pay the huge sum to fulfil its legal obligations to the EU made before the 2016 Brexit vote.
But speaking at Prime Minister’s Questions today, Mrs May said the UK could refuse to pay the divorce settlement if negotiations fail.
She said: “We need a link with the future relationship and withdrawal agreement. We honour commitments and abide by legal obligations.
“However, the specific offer was made in the spirit of our desire to reach an agreement with the EU.
“And as the EU themselves have said, nothing is agreed until everything is agreed. Without a deal, the position changes.”
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