THE UK must end its “brinkmanship” with Brussels and rule out a disastrous “no deal” Brexit, the SNP government has warned, as the third round of fraught UK-EU talks gets underway.

Brexit minister Michael Russell urged Theresa May’s government to drop a time-wasting pretence that no deal is a practical option, and urgently make progress with Europe.

Failure to strike a deal with Brussels, which would see the UK hit by trade tariffs, was not just bad but “unthinkable”, and the continued uncertainty was damaging business, he said

Brexit Secretary David Davis is due to meet lead European negotiator Michel Barnier today amid continued frustration on both sides about the lack of progress on Brexit.

The UK government has recently published a series of papers on UK withdrawal which it says offer a vision for a “deep and special” future for the UK-EU relationship.

However Mr Barnier has appeared underwhelmed, insisting the priority for talks remains the UK’s ‘divorce bill’ for Brexit, the fate of EU nationals living in the UK, and the Irish border.

That has frustrated the UK’s desire to discuss future trade relations and a bespoke transition deal with broadly similar access to the EU single market and customs union.

Ms Davis said he hoped the four days of talks would “lock in” points of agreement, but acknowledged it would require “flexibility and imagination from both sides”.

Labour used the occasion to rebrand itself as the party of soft Brexit, backing continued membership of the EU single market and customs union for many more years.

Shadow Brexit Secretary Sir Keir Starmer said a Labour government would abide by the “same basic terms” of the UK’s current membership during the transition period, which could last four or five years beyond March 2019.

That would mean payments to the EU, freedom of movement, and the European Court of Justice’s jurisdiction would continue, possibly leading to a similar permanent arrangement.

However Labour’s attempt to clarify its position was undermined by Jeremy Corbyn appearing at odds with Scottish leader Kezia Dugdale on aspects of Brexit.

The UK leader said it would be “very, very difficult if not impossible” to vary arrangements for Scotland, despite Ms Dugdale saying immigration and employment law might be devolved.

Mr Russell said: “Today the UK Government must make clear, without delay, that no deal is not only a bad outcome, it is an unthinkable outcome.

“More and more people across business and in our communities are expressing their concern at the damage being done to our economy and public services.

"This is no time for brinkmanship. By ruling out a 'no deal' outcome at least some of that damage can be limited.

"In just eight weeks the 27 EU member states will consider whether there has been 'sufficient progress' in the negotiations.

“The clock is ticking yet we are running out of time to ensure we have transitional and longer-term arrangements to protect, as much as possible, the interests of Scotland, the UK and the EU.

“It took far too long - a full year - for the UK Government to finally agree that a transitional period was required at all.

"We strongly believe the best long-term option, short of EU membership, is to remain in the European single market and customs union. This is essential for Scotland's economy.”

In a paper on future customs arrangements published two weeks ago, the UK Government said it was working on contingency plans for a “no deal” scenario.

“It is only prudent that the Government prepares for every eventuality,” it said, including “standalone customs, VAT and excise systems, as necessary” once outside the EU.

Mr Davis urged the EU to “consolidate areas of agreement” with the UK in this week’s talks.

He said: “For the UK, the week ahead is about driving forward the technical discussions across all the issues. We want to lock in the points where we agree, unpick the areas where we disagree, and make further progress on a range of issues.

“But in order to do that, we'll require flexibility and imagination from both sides."

“Our goal remains the same. We want to agree a deal that works in the best interests of both the EU and the UK, and people and businesses right across Europe.

“And we're ready to roll up our sleeves and get down to work once more.”

SNP MP Stephen Gethins welcomed Labour’s “tentative” conversion to a soft Brexit, but said the party should back permanent single market membership, not just in the transition phase.