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The UK claimed negotiations over a financial services arrangement had ground to a halt, blaming Brussels bureaucrats for the delay. Treasury officials said London is willing to grant the EU regulatory system for financial services equivalent to Britain’s. This would hand the bloc’s companies access to British markets after the post-Brexit transition period expires at the end of the year.

But Brussels is behind schedule in its planning to offer British banks and investment companies a similar arrangement.

A UK official told the Financial Times: “Our process is basically done.

“We are ready to grant equivalence as soon as the EU finishes its process.”

British officials said the EU had not returned all the necessary paperwork for a UK review of EU supervisory rules.

They also complained that Brussels had demanded about 1,000 pages of detailed information be filled out before decisions can be made.

Last year the two sides agreed that they would complete assessments of each other’s regulatory framework for financial services by June 30, but that deadline will be missed.

They are hoping to continue financial services trade using so-called equivalence after Brexit.

The system allows either side to judge whether the other’s regulations are up to scratch before granting market access to their financial services companies.

UK officials believe the EU is deliberately dragging its feet because it wants to use the City of London to force concessions in the future relationship talks.

The Treasury insisted the UK and EU were “committed to complete equivalence assessments ahead of the summer”.

A spokesman added: “As the UK and EU start from a position of having similar financial services regulation this should be a straightforward process.

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“We are now ready to reach comprehensive findings of equivalence as soon as the EU is able to clarify its own position.”

But Brussels hit back, insisting Britain was to blame for any delay to the process.

European Commission vice-president Valdis Dombrovskis claimed the UK had only returned four out of the 28 questionnaires sent by Brussels to establish information about British financial regulation.

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He said: “Some questionnaires have been answered, most of them have not been answered yet, so we are still waiting for these responses because that is important for us doing the equivalence assessment.”

Brussels expects to make its final decision on financial services firms later this year, when the outcome of future relationship talks between the UK and EU look clearer.

Mr Dombrovskis said he wants the EU to be able to take into account “overall developments, including any divergences by the UK from EU rules”.

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