Businesses call for transitional deal

Britain’s major business groups have called for a transitional deal with the EU in a bid to put the economy first in Brexit talks.

A letter signed by the CBI and the British Chambers of Commerce calls for an arrangement where the UK can “maintain the economic benefits” of the European single market and customs union until a final settlement is agreed.

The letter, also signed by the manufacturers’ group EEF, the Federation of Small Businesses and the Institute of Directors, presses for an early deal guaranteeing the rights of EU citizens in Britain.

The groups, which claim to represent hundreds of thousands of businesses, have also called for a “frictionless” border between Northern Ireland and the republic.

The letter said: “We have come together to urge the government to put the economy first as it prepares to start formal negotiations on the UK’s departure.

“This is a deal that when finally agreed will matter fundamentally for the UK economy, for UK companies and for citizens. A deal that supports growth will allow companies to hire more people, raise living standards and improve lives across the country.”

The final deal with the EU should ensure tarifffree goods trade between the UK and the bloc, the letter says, as well as minimal customs checks and a “flexible system for the movement of labour and skills” that enjoys public support.