Britain may have to pay a £50 billion Brexit divorce bill, Sir Keir Starmer MP says.
Speaking on The Andrew Marr Show, the shadow Brexit Secretary said it is crucial the UK continues to honour its obligations to international organisations like the European Union.
He added: 'The Labour Party needs to make this case loud and clear. I am prepared to see Britain enter into transitional arrangements over a longer period of time to get the right relationship with our European neighbours.'
However, the Home Secretary Amber Rudd went on to refute these claims.
'Very damaging if there is no deal'
After paying tribute to PC Keith Palmer, the police officer murdered in last week's Westminster attack, Starmer outlined Labour's six tests for the final deal.
He said he wants there to be a discussion about the right deal and to help the Government organise one that is 'right for our country.'
Speaking in response to Marr's question on the Labour Party wanting to preserve a working partnership with the EU, the shadow Brexit Secretary said there are 'pure' Brexiteers who do not want to maintain this collaborative relationship.
The BBC presenter quoted Michel Barnier, who said there is the possibility of no deal with the UK, to which the Labour MP said 'it would be very damaging if there is no deal.There will be protests if that is the case.'
'Hopeless to ask for same benefits'
The Sunday morning presenter asked the Shadow Cabinet member whether or not it is 'a hopeless thing to ask for the exact same benefits that we receive as members of the EU's Single Market and Customs Union.'
But the former barrister said he does not accept Britain cannot continue to receive the same benefits as part of a free trade agreement with the EU.
He said this will deliver the same benefits that membership of these EU bodies currently provides.
He quoted the Brexit Secretary, David Davis, who said in a column for The Sun that this is achievable.
The BBC journalist said the President of the EU Commission, Jean Claude-Juncker, suggested Davis' free trade agreement is achievable and paying a £50 billion divorce bill may be the way to gain continued Single Market access.
He added: 'This is a pretty hefty bill for continued access to the Single Market.'
The Holborn MP said he is not entering a debate about figures.
He said he wants to clarify what the money is for and what the principles behind the divorce bill are before stating whether or not the Labour Party would support paying this fine.
He said Brexit will endure for more than two years once Theresa May triggers Article 50 this week.
This could result in Britain retaining membership of the European Economic Area for the time being.
'No deal better than a bad deal'
The Sunday morning presenter asked Home Secretary Amber Rudd if no deal with the EU is damaging.
She said: 'It is worse to have a bad deal with them than no deal.'
However, she refused to specify if this means the UK would have to pay the divorce bill for continued Single Market access.
The Andrew Marr Show is on every Sunday in between 9am-10am. You can catch the latest episode here: http://www.bbc.co.uk/iplayer/episode/b08I62r7/the-andrew-marr-show-26032017/.