European Union officials have started to work on a plan to create a long-term budget that does not include the UK, according to the Financial Times.
The plan comes amid mounting frustration at Britain's demand for a spending freeze.
EU officials and national diplomats are studying the legal and technical feasibility of the plan, according to reports. On Thursday, leaders from 27 countries will meet on Brussels to try and reach agreement on the long-term budget.
More top news
A police officer in today's London Pride parade surprised his partner by proposing in the middle of the parade.
Government minister Justine Greening has apparently opened up about her sexuality, as thousands took part in the London Pride parade.
Record crowds are at this year's Pride in London parade as people show their support for the LGBT community after the Orlando shooting