Mr Barnier indicated this week the EU may drop its demands over state aid which, professor Alex De Ruyter from Birmingham Universitys Centre for Brexit Studies, stated is a major boost for the UK. The EU has called for the UK to agree to a level playing field on state aid but this week Mr Barnier indicated the demand could be dropped for an independent dispute settling mechanism. Speaking toExpress.co.uk, Mr De Ruyter stated an independent dispute settling mechanism would be the obvious way to settle state aid rules.

He said: This is what the UK has been pushing for all along and it would represent a major move.

To be honest, an independent dispute resolution mechanism is the obvious way to resolve disputes relating to any trade agreement.

This is widely done internationally.

The issue of state aid has remained one of the areas of divergence between the two sides during Brexit talks.

State aid determines the level of support from public authorities for organisations.

The EU wants the UK to agree to a certain set of regulations and rules in order stop Britain undercutting Brussels and becoming a more attractive destination for companies.

This week, Mr Barnier told EU diplomats an independent mechanism could be created in order to settle the issue.

Such is the importance of the issue, some diplomats stated if the UK agreed to the proposition, a deal could soon be agreed.

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The diplomat said: There must be a solid framework with independent oversight.

If they agree to settle on broad rules for granting state aid and to have this independent institution, then we have a deal.

The rules surrounding fisheries and the role of the European Court of Justice in British judicial matters also remain undecided.

Similar to the issue of state aid, UK officials have declared any ECJ role in UK judicial matters would keep Britain tied into regulations and rules set by Brussels post-Brexit.

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In terms of fisheries, the UK is adamant Britain must no longer be under the Common Fisheries Policy.

Under the policy, all coastal areas are placed within the EUs exclusive economic zone.

However, due to the UKs large and rich coastal waters, some have stated the policy allows Europe fishermen to exploit Britains waters.

UK officials want to move away from the policy and set up an agreement similar to Norways fisheries deal with the EU.

Under the agreement, the EU and Norway hold annual negotiations on fishing quotas and access.

Despite the concession from the EU on state aid, Mr Barnier has called for preparations to be made for a no deal Brexit.

Prof De Ruyter concluded: There is scope for both sides to come to a reasonable agreement, but that doesnt mean they will!

At the moment, it is still very unclear what the eventual outcome will be, although I would stress that a no deal scenario would be more costly for the UK than the EU."

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Michel Barnier's 'major' concession on state aid a big win for UK - EU backing down - Daily Express