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Crisis talks to broker a Brexit deal between the government and Labour have collapsed.

Labour leader Jeremy Corbyn said the negotiations had "gone as far as they can" because "we have been unable to bridge important policy gaps between us".

He complained that as a leadership race kicks off in the Conservative Party, the "position of the government has become ever more unstable and its authority eroded".

But Prime Minister Theresa May blamed the collapse in talks on "the fact that there is no common position in Labour about whether they want to deliver Brexit or hold a second referendum which could reverse it."

Mr Corbyn insisted the talks so far had been "detailed" and "constructive", adding that Labour would consider any new proposals made to break the Brexit deadlock.

But he confirmed the party would be voting against the law paving the way for Mrs May's Brexit deal next month if it remains unchanged.

Mrs May said MPs now face "a stark choice" - to "vote to deliver on the referendum; to vote to deliver Brexit or to shy away again from delivering Brexit with all the uncertainty that that would leave".

Downing Street confirmed there were no more talks planned with Labour after Mr Corbyn's statement.

The prime minister's spokesman said she still believed MPs had a duty to find a way to deliver Brexit and added the government is considering its next steps.

A new set of binding "indicative votes" are now likely, having been promised by the prime minister.

But they would need to be scheduled speedily as parliament is due to wind down next Thursday for nearly two weeks.

When they return, MPs will vote on the Withdrawal Agreement Bill - the legislation that would convert the Brexit deal into a legally-binding treaty.

The compromise talks were convened six weeks ago, when Mrs May lost the third vote in parliament on her EU withdrawal agreement.

She called for a "national unity" approach to deliver Brexit after being forced to delay Britain's departure date twice.

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Reacting to news of the breakdown in talks, Tory MP Simon Clarke said: "Thank God. They ought never to have happened."

Brexit Party leader Nigel Farage said: "Jeremy Corbyn was never going to come to an agreement on this. Why would he help the Tory Party?"

Former international development secretary Priti Patel tweeted: "Many of us did question the judgment of the cabinet when they approved those talks."

The CBI said MPs should cancel their end of May holiday plans to resolve the Brexit deadlock.

CBI director-general Carolyn Fairbairn said: "Another day of failed politics, another dispiriting day for British business.

"Six wasted weeks while uncertainty paralyses our economy."

The pound has fallen half a cent against the US dollar to its lowest level since January, just above the $1.27 mark.

It was also at its lowest point versus the euro since February at just over €1.14.