The European Parliament has branded Theresa May’s proposals on EU citizens’ rights a “damp squib” and said they'll not approve a Brexit offer that will not offer more.

A letter jointly penned by European Parliament Brexit Chief negotiator Guy Verhofstadt and the leaders of four of the parliament's main groups said that the proposal was a "damp squib". Mr. Verhofstadt said, “In the EU proposal, British people and Europeans keep the same rights and the same level of protection they currently enjoy under European law”. However, he added that the UK Government proposes that the day after Brexit, the EU nationals would get fewer privileges in the United Kingdom than UK citizens are offered throughout the EU. He said that this will create red tape and uncertainty for millions of people.

It creates a kind of second class citizenship for EU nationals living in the UK. Mr. Verhofstadt said "We don't see why their rights should be diminished and that would be the case in the proposal.

"In the end, it is the European Parliament that will say yes or no, and I can tell you it not will be a yes if the rights of European citizens - and also the rights of UK citizens living on the continent - will be diminished [and] cut off, like it is at the moment."

Mr. Verhofstadt also made it clear that there can be no extension to the 31 March 2019 deadline.

Liberal Democrat leader Tim Farron said the Government’s approach had “turned our closest allies against us”. He said: “Theresa May has gambled and lost. She tried to use EU citizens as bargaining chips and they’ve called her bluff. 

A UK government spokesman told the BBC: "We have always said we want a reciprocal arrangement that allows EU citizens to continue to live their lives in the UK broadly as they do now, which is why we set out our proposal to guarantee their rights with a new 'settled status'.."