If Britain does not reach an exit deal with the European Union, the "position changes" on its agreement to pay a financial settlement to the bloc, Prime Minister Theresa May said on Wednesday.

As part of a Brexit transition deal, Britain has agreed to pay the EU between €35 billion and €39 billion over the coming decades.

"We are a country which honours our obligations, we believe in the rule of law and therefore we believe in abiding by our legal obligations," she told parliament.

"However ... the specific offer was made in the spirit of our desire to reach a deal with the European Union and on the basis, as the EU themselves have said, that nothing is agreed until everything is agreed, without a deal the position changes."

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