A POST-Brexit “reset” deal with the EU may include a “Farage clause” to protect it from being broken if the Reform UK leader gets into Downing Street.

EU diplomats requested the British government pay a significant fine in the event of a U-turn following discussions aimed at closer alignment with the bloc.

The termination clause would require London to pay restitution if the next government breaks a proposed EU-UK “veterinary agreement” aimed at removing red tape for food and drink exports.

A draft text included the provision aimed at blocking Mr Farage from following through on promises to reverse the “reset” if elected, according to the FT.

The clause says that if either party pulls out of the deal, it would have to pay the costs of setting up “the infrastructure and equipment, initial recruitment and training, in order to set up the necessary border controls.”

One EU diplomat told the newspaper: “The EU wants an agreement long-term and not only until 2029, should a change happen at the next election.”

Earlier this week, British officials said they would exclude the financial sector from a post-Brexit agreement, after City of London firms lobbied against reintegrating EU rules.

They said that despite Sir Keir wanting “closer co-operation” with the bloc, he would only allow EU laws in specific areas such as food standards and animal welfare for smoother trade.

British banks initially lobbied for an “equivalence” deal to maintain access to EU markets in return for UK banking regulations to align with the EU after Brexit.

But now, opinions have changed in the sector.

“Ten years ago equivalence would have been very valuable, but now the world has moved on,” said Kerstin Mathias, international affairs director of the UK Finance trade body.