There will obviously be a deal, but it's one that will be much worse than membership of the EU and will hurt our GDP by 3-5% as a reasonable estimate.
The EU won't back down on a level playing field, as that'd mean any EU member could just leave, go full on low regulation in a race to the bottom to attract foreign investment. It'd end the project. The Tories want to not have the level playing field, as they could then do just that - erode worker rights, go low tax for corps and skim off the top and make themselves billionaires.
The Brexiteer bedwetters will be getting what they want by January - a UK with a vastly reduced influence on the global stage, worse off economically with no realistic way of ever competing with our current peers on a financial setting ever again, but hey, at least the passports will be blue.