Arguments about the potential €60bn bill that the UK may owe the EU as it prepares to quit the Union could eat into the time left for the UK to strike a new trade deal, a leading economist has warned.

Britain’s top share index climbed to its highest level in nearly a year yesterday, led higher by miners, and with ITV soaring after a well-received trading update.

Sterling held its steepest decline in more than six years as data confirmed that the UK economy gained momentum at the end of last year.

Taking stock after a month of crisis, analysts said yesterday that most European bond yields, including Ireland’s, have weathered well as fears about the Greek exit abated, while the euro has weakened against sterling as the UK interest rates rise draws closer.