AGREEMENT on a new set of civil judicial rules post Brexit is “vital” for millions of British families, businesses and consumers, the UK Government has insisted, because failure to do a deal with Brussels could make cross-border disputes costlier and lengthier.

David Lidington, the UK Government's Justice Secretary, said an "even closer set of co-operative arrangements" between Britain and its European neighbours was needed to continue the current very close co-operation on civil judicial matters after Brexit.

The UK is seeking a new arrangement which would "mirror closely" the sophisticated EU system for deciding which country's court should hear a civil, commercial or family dispute raising cross-border issues, whose laws should apply and how any decision should be enforced.

If Britain left without a deal, UK citizens could find themselves forced to fall back on international rules set out in agreements such as the Hague Convention, which officials acknowledge are slower and less effective than the EU system.

And rival sides in a dispute could end up launching court cases in the UK and another EU state without agreement on which ruling is definitive.

The problem could affect Britons involved in divorce, custody and child maintenance battles with EU-born spouses, companies suing continental suppliers or consumers seeking compensation for faulty European goods.

The European Commission has so far set out proposals only for dealing with cases already under way at the time of Brexit. David Davis, the Brexit Secretary, is now pressing for early discussion on the arrangements for co-operation after the UK leaves the direct jurisdiction of the European Court of Justice.

Announcing plans to seek "new close and comprehensive arrangements" for civil judicial co-operation with the EU, reflecting "closely" the existing rules, the UK Government paper states: "We have a shared interest with the EU in ensuring these new arrangements are thorough and effective.

"In particular, citizens and businesses need to have continuing confidence as they interact across borders about which country's courts would deal with any dispute, which laws would apply and to know that judgments and orders obtained will be recognised and enforced in neighbouring countries as is the case now."

The paper says the current EU arrangements deliver "predictability and certainty" and play "an important role" in enabling businesses to trade with confidence across borders, providing legal certainty in cross-border transactions and avoiding delays and excessive costs in family cases.

"The best way to ensure legal certainty for both UK and EU citizens and businesses as we leave the EU is to facilitate a smooth transition to a new relationship in civil judicial co-operation," it says.

In order to allow citizens and businesses on both sides to plan ahead, both the UK and EU would benefit from "an interim period that allowed for a smooth and orderly move from our current partnership to our future partnership".

Mr Lidington said: “The best outcome not just for the British citizens but it's for the other EU 27 as well is if we have an even closer set of co-operative arrangements amongst the countries that are near neighbours, so we continue with the sort of very close co-operation that we've got now on these civil judicial matters."

The paper makes clear that the UK intends to apply for membership as an individual country of international judicial agreements in which it currently participates through its EU membership, including the Hague Convention against child abduction.

The proposals published by the Brexit Department today are the latest in a slew of papers setting out the UK Government's position ahead of the third round of formal Brexit talks in Brussels next week.

Most explosive is likely to be a paper on future relations with the European Court of Justice, expected in the coming days.

Britain is calling for a new reciprocal framework for civil law based on commitments to build on existing co-operation and to continue collaboration across borders.