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Michael Gove has “formally confirmed” the UK will not extend the Brexit transition period beyond the end of 2020 and that “the moment for extension has now passed”.
The Cabinet Office minister made the announcement following a video meeting of the EU Joint Committee on Friday.
Earlier today the first ministers of Scotland and Wales called for an extension.
But in a tweet this afternoon, Gove said: “I formally confirmed the UK will not extend the transition period and the moment for extension has now passed.
“On 1 January 2021 we will take back control and regain our political & economic independence.”
It comes as the UK economy contracted by more than a fifth in the first full month of lockdown, as shops and factories closed and workers were sent home.
The Office for National Statistics (ONS) said that economic activity was down by 20.4% in April, the largest drop in a single month since records began in 1997, and worse than many experts were forecasting.
The UK had committed to introduce import controls on EU goods in the new year, but ministers are now expected to adopt a more flexible approach to prevent the departure compounding the chaos from Covid-19.
Boris Johnson has repeatedly insisted he will not ask for a delay to the end of the transition period, despite businesses and critics warning of the dangers of a departure without a trade agreement in place.
A virtual summit between the prime minister and EU chief Ursula von der Leyen to try to break the deadlock in trade negotiations has been scheduled for Monday.
The negotiating teams have also agreed to “an intensified timetable” for July with possible discussions in person if public health guidelines enable them during the coronavirus pandemic.
The pace of talks will be scaled up so negotiators will meet in each of the five weeks between June 29 and July 27, No 10 said.
The UK’s 14-day quarantine period for new arrivals should not hinder the talks in its current form, with the rules having an exemption for those on official visits such as negotiations.
The new details came after the fourth round of negotiations failed to reach a breakthrough last week.
EU chief negotiator Michel Barnier lamented there having been “no significant areas of progress” as he accused the UK of having “backtracking” on the agreed political declaration.
His counterpart in Downing Street, David Frost, said they would have to “intensify and accelerate” the process if there was to be any chance of an agreement.
Both sides also said the remote meetings had reached their limit and that face-to-face meetings would be needed in order to progress.