According to this Business Insider article, the EU’s chief negotiator says he will recommend delaying the next phase of talks until the end of the year.
The UK team got pushed into following a fixed agenda for negotiations (they were weak and unprepared). The EU are playing by the agreed rules and member countries are in no mood to make concessions.
Theresa May and her Brexit ministers have been far from open and honest with both parliament and the UK public, painting a falsely optimistic position.
Basically, May’s government is ready to crash out of the EU, unless the EU makes concessions. This fight will go right to the wire.
Although I voted Remain, if the UK is forced to crash out of the EU, the UK must make demands on the EU, including deferring financial settlements and strategic agreements, like defense. Surely, it’s time for the UK to play hardball?