Britain is facing the prospect of a delayed Brexit deal or no deal at all.

Prime Minister Theresa May said the transition period may be extended, after she failed to reach an agreement at a crucial summit in Brussels.

Germany and France are considering scaling back the rights of British nationals in the case of a no deal.

Jonathan Portes, the former chief economist of the British Cabinet told Kate Hawkesby British expats are facing a precarious future.

"What it does, I think highlight, is the degree of uncertainty that the prospect of a no deal Brexit brings."

He said it's unclear if a deal will ever be reached.

"We just don't know what's going to happen in the event of a no deal and it's not scare mongering to say things are going to get very messy indeed."

LISTEN ABOVE AS JONATHAN PORTES SPEAKS WITH KATE HAWKESBY