UK should be better prepared for no deal on Brexit, says ex-bank governor

The UK needs to be better prepared for a "no deal" Brexit to show Brussels there is a "credible" alternative should the negotiations fail, a former Bank of England governor has said.

Lord King of Lothbury said failing to agree a trade deal with Brussels was "not the first preference of anybody", but more work needed to be done to show the European Union that the UK was serious about walking away if there was no agreement.