Labour has refused to back an extension to the Brexit transition period, despite the rising threat of no-deal. 

Keir Starmer said Boris Johnson should get the “oven ready” deal he promised “over the line”, and told reporters on Monday: “I don’t want an extension, I want a deal.”

Several Tory MPs and London mayor Sadiq Khan have backed calls for an extension after more than £33bn was wiped off the FTSE 100 on Monday morning due to fears over a no-deal and new coronavirus restrictions.

Starmer said the prime minister should address the British people as soon as possible and recall parliament. 

Fears are mounting that negotiators have so far failed to strike a trade agreement in Brussels, despite ongoing talks, and that the UK is set to crash out of the bloc on December 31. 

It comes as a new and more infectious strain of Covid-19 saw the pandemic significantly worsen in the UK.

Emmanuel Macron imposed a 48-hour ban on UK freight entering France, sparking further chaos at the border and fears of food shortages. 

Asked if the transition period should be extended, Starmer said Johnson should “get that deal over the line today or tomorrow, don’t delay”.

He added: “People were promised a deal and you must deliver that deal”.

The Labour leader spoke out after giving a speech on the future of devolution in the United Kingdom.

He insisted a no-deal Brexit would be a “very, very bad outcome and a complete failure of the government”.

He told Johnson: “You promised an oven ready deal, get on and deliver it.”

It puts Starmer at odds with Labour mayor of London Sadiq Khan, who has urged Johnson to seek an extension to the transition period.

Khan said: “Securing our key supply chains and fighting the coronavirus pandemic requires the full and undivided efforts of ministers more than ever before.

“Risking the chaos and uncertainty of a no-deal Brexit was reckless even before the latest surge in Covid cases and the worrying news about this latest strain.

“With the virus spreading rapidly and our hospitals increasingly stretched, the only thing the country should be concentrating on is fighting the virus.” 

Trade deal talks are expected to continue throughout Monday, a UK government source said on Sunday night. 

The source said the discussions in Brussels had been “difficult” and that “significant differences” remained between the two sides on fisheries and state aid rules.

“Teams have been negotiating throughout the day and expect to continue tomorrow. Talks remain difficult and significant differences remain,” the source said.

“We continue to explore every route to a deal that is in line with the fundamental principles we brought into the negotiations.”