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Graham Brady, chairman of the influential 1922 Committee of Conservative lawmakers, expressed optimism that a breakthrough was close.

"The possibility that monetary tightening might be needed in the future does not necessarily mean we need to tighten now", Saunders said in a speech at Imperial College in London.

Barnier meanwhile told European Union commissioners in Brussels that the negotiations were proving "difficult" and a way had not been found to deliver the legally-binding changes Cox needs to reassure Brexiteers that Britain will not be trapped in the backstop.

The UK is due to leave the European Union on 29 March, with or without a deal.

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Many Labour lawmakers represent areas that voted heavily in favour of Brexit in Britain's 2016 referendum and fear their party's position to support a second referendum could alienate their constituents.

British Prime Minister Theresa May unveiled £1.6 billion (US$2.12 billion, 1.87 billion euros) in regional development funds Monday in what opposition MPs dismissed as a "desperate bribe" to persuade them to back her Brexit deal.

Cox and Barclay will hold a 90-minute meeting with the EU's chief negotiator Michel Barnier and other officials from the bloc on Tuesday, followed by further discussions over dinner. The government will also seek to ensure towns across Wales, Scotland and Northern Ireland will benefit from the new funding.

Asked after a meeting of senior ministers whether May had set out specific details of what Cox was seeking, her spokesman said: "No ... you can expect them (Cox and Barclay) to be having detailed discussions around the legally binding changes we're seeking to the backstop, but it wasn't discussed at cabinet". If she can not, then the exit date is nearly certain to be delayed by lawmakers eager to avoid a potentially disorderly no-deal exit. Should that fail, as expected, there would be a vote a day later on a "no-deal Brexit".

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But Brady and other leading Tory backbenchers - who fear the alternative to May's deal would be a no-deal Brexit, a lengthy delay or a second referendum - now seem prepared to drop their demand on condition that they win reassurances that the backstop will be temporary and does not risk locking the United Kingdom into a permanent EU customs union.

"We're into the meat of the matter now", Cox told Sky News. But the wording of the document is understood to allow her considerable leeway to achieve a compromise that the European Union could also agree to.

May's government is also preparing to announce greater guarantees for workers' rights after Brexit, again in a bid to get Labour MPs onside.

The Labour Party's Shadow Chancellor John McDonnell said: "This towns fund smacks of desperation from a government reduced to bribing MPs to vote for their damaging flagship Brexit legislation".

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With Tory Brexiteers still refusing to commit to voting for the agreement, ministers have acknowledged they may need the support of opposition MPs if the deal is to get through Parliament on Tuesday.


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