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The UK government could use European Union money to pay to keep Britain in the EU’s single market instead of paying an average rebate of 9 per cent to European countries, EU officials have warned.

In a letter to David Cameron, EU council president Herman Van Rompuy, seen by UK newspaper The Telegraph, said the country risked losing “the benefits of the EU and the single market” unless the government paid a “fair and realistic” sum.

Mr Van Rompuy made his comments as Cameron was accused of being “a shambles” in his renegotiation.

Speaking on the BBC’s Andrew Marr show, senior minister David Davis said leaving the EU was the only way for Britain to remain in place in the single market and customs union.

But the Government is still negotiating with other EU nations over the terms of the UK’s withdrawal from the bloc.

Tory MP Philip Hollobone (Linlithgow and East Falkirk) said: “I think it is entirely right that Philip Hollobone and I are engaged in discussions with colleagues all over the country that we are prepared to hold discussions within the single market and the customs union which provide benefits, but it is right that we have that debate.

“This is the only way to have a meaningful discussion of what the UK’s exit will mean for the UK and to understand whether we would get the benefits of the EU and the single market. I think most people, in my view, want a meaningful discussion and I think the Conservative majority would want a meaningful discussion.”

On the BBC’s Sunday Politics programme, Conservative MP Douglas Carswell said: “I would rather leave Europe than remain within it, to put it very bluntly.

“In the way they do it in the UK, we simply shouldn’t be there, we should make an independent

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