The Tories warn of a "bombshell" under Jeremy Corbyn - but Labour calls their claims "absolute lies".

European Parliament
Brussels

Former UKIP leader Diane James says Mr Verhofstadt is taking a "hard line" on the forthcoming talks.

She says it is "to be expected" that both sides will draw red lines before the negotiations begin, but that public opinion in the UK has been "inflamed" by the leaking of details of Theresa May's dinner with EU Commission President Jean-Claude Juncker last week. 

She says this is a continuation of the "bullying coming out of the European Union".  

Victoria Derbyshire

As official campaigning gets under way today, the Victoria Derbyshire show asks a panel how they see things panning out.

"Spectacularly dull," says Anne McElvoy, a senior editor at the Economist, "enlivened by the kind of pratfalls we saw yesterday from Diane Abbott, who got in a muddle about police funding numbers."

She says it's such a tight timeframe that unless politicians are on top of their briefs, someone's going to ask an awkward question.

Theresa May, she believes, is determined to make the campaign boring because that's what she needs to get a stronger majority. "She doesn't want any excitement," she adds.

A quick precis so far on Wednesday:

• Brexit Secretary David Davis rejects suggestions the UK could pay a €100bn "divorce" bill when leaving the EU. He also attempts to reassure EU citizens in the UK and Brits living overseas. They can expect to get "pretty much what they get now" in terms of rights, he says
• On the subject of Theresa May being "a bloody difficult woman" if need be in the Brexit talks, Mr Davis doesn't use those words, but seems confident she's the right person for the "rough and tumble" ahead
• John McDonnell, Labour shadow chancellor, was angry this morning at Conservative claims his party would hit the country with a £45bn tax-and-spend "bombshell". He was also unimpressed with the BBC for repeating them
• The Tories, though, say they've added up Labour commitments on policing, the NHS, infrastructure, and others - and the plans to raise revenue won't be enough
• Elsewhere, Labour is focusing on the NHS and saying it would reverse the planned closures of hospital services across England
• And on a lighter note, it's two years to the day since the infamous Ed Stone was revealed, external

European Parliament
Brussels

Guy Verhofstadt says EU leaders will judge whether "sufficient progress" has been made on the early negotiating points before deciding whether to begin talks on a trade deal. 

He suggests that this could occur in October or November. 

The UK would like to get going on trade talks as soon as possible, but some, including the European Union's top trade official say that cannot begin until after it has left the bloc.

Victoria Derbyshire

It's a bit like when you get two heavyweight boxers at a weigh-in going eyeball to eyeball. There's an awful lot of muscle flexing and public posturing. 

We had yesterday Theresa May warning she's going to be a "bloody difficult woman". Now we have the EU hitting back that they could demand we pay €100bn to leave the EU. 

This is because - apparently - the French and the Poles want Britain to pay some of our farm subsidies in the future.

Theresa May knows it looks good to present herself as a strong leader - how many times have we heard her going on about that? 

There's also a view that David Cameron got rolled over because he was too amenable, a bit too co-operative, and it makes sense to play hard-ball. 

The risk is if Mrs May doesn't live up to the sort of "bloody difficult woman" language then she'll be seen and accused of having backed down and bottled it. So there are risks in this strategy.

European Parliament
Brussels

More from Guy Verhofstadt over in Brussels. Talks over citizens' rights should be "point one" in the negotiations, he tells MEPs.

He says that the financial settlement should cover the UK's existing budget commitments, as well as "contingent liabilities" - such as guarantees to cover bailout loans. 

You'll remember the figure of €100bn being bandied around this morning for that particular settlement - but there's been no official word on a number from Brussels.

Today Programme
BBC Radio 4

Guy Verhofstadt, the European Parliament's Brexit spokesman, says the issue of the rights of EU nationals living in the UK - and UK citizens in Europe - should be the first issue to be discussed. We can't have a situation where millions of citizens continue to live in uncertainty, he tells MEPs. 

European Parliament
Brussels

Image source, EBS

Guy Verhofstadt tells MEPs that their motion last month to set out red lines for the talks was supported by an "overwhelming majority" - and five of the assembly's eight political groups. 

He says there is "enormous similarity" between their demands and the guidelines officially adopted by EU leaders last weekend. 

He adds that a "Brexit steering group" from the political groups backing the motion will be set up to monitor the progress of talks. 

Today Programme
BBC Radio 4

How much will Brexit cost? The Financial Times this morning has the figure at €100bn.

Wel,, David Davis told Today "we will obey our legal obligations" but whatever the deal, it "has to be by agreement".

If we leave with no deal, there's nothing to pay, he insists. That's an option remember - and Theresa May has said walking away with no deal is better than accepting a bad one.

But that's not what we want, Mr Davis adds: "We want a deal. We think we can get a deal that is beneficial to everybody."

Image source, AFP

Of Michel Barnier, the European Union's chief negotiator for Brexit (pictured above), Mr Davis is complimentary, describing him as "tough, straightforward, French and elegant".  

Today Programme
BBC Radio 4

David Davis goes on to say he expects to succeed in getting an agreement to let British citizens in the EU stay put and EU nationals in the UK carry on living here.

"They are suffering anxiety as long as we leave this undecided," the Brexit secretary says.  

"It's the intention they will have a generous settlement - pretty much what they enjoy now."

"At every stage there will be hitches. We think there's no reason at all that can't be solved quickly," he adds.  

Image source, EPA

Over in Brussels, the European Parliament’s Brexit spokesman Guy Verhofstadt, above, will shortly be giving evidence to the assembly’s constitutional affairs committee.

It will be the first time he has appeared before the committee since MEPs adopted their red lines for the forthcoming Brexit talks last month.

MEPs will have to ratify the final deal before it can be agreed by EU leaders.

On Monday, Mr Verhofstadt appeared to mock Theresa May by adapting her election campaign slogan to tweet, external that “strong and stable understanding” of “complex issues” would be required to reach a deal, and that it was “time to get real”.  

You can watch live coverage of the session here. 

Today Programme
BBC Radio 4

Image source, AFP

Brexit Secretary David Davis says he's spoken to most of the countries in the EU and the "general response has been very positive".

Everybody I saw  - bar one - thought a trade deal was very important, he says.

He adds that EC president Jean-Claude Juncker, above, was afraid Brexit might cause division in the European Union, but "we have no intention" of doing that.

These, he says, are the tough early stages of the negotiations, the "rough and tumble approach".

Of the negotiations more broadly, he says Mrs May is "exactly the right person to do this - she's decisive and tough and they know her".