Business demands transition agreement

BRITISH business chiefs have warned that further delays to negotiations on a post-Brexit trade deal could have “damaging consequences” and called for a transition agreement as soon as possible.

Industry representatives in the UK released a joint statement welcoming European Union leaders’ agreement to move on to the second stage of Brexit negotiations, dealing with the transition to a new relationship.

The British Chambers of Commerce (BCC), Confederation of British Industry (CBI), Federation of Small Businesses (FSB), Institute of Directors (IoD) and EEF, which represents manufacturers, said: “It is our collective view that the transition period must now be agreed as soon as possible, to give businesses in every region and nation of the UK time to prepare for the future relationship. Further delays to discussions on an EU-UK trade deal could have damaging consequences for business investment and trade, as firms in 2018 review their investment plans and strategies.”

Labour MP Chuka Umunna, on behalf of the Open Britain campaign for close ties with the EU, said ministers are now being confronted with the “sheer complexity and monumental costs” of Brexit, and are illprepared and have “insufficient time”. He said: “Contrary to the claims of Brexiters who said that trade talks would begin speedily, we now won’t be able to discuss the future relationship until March at the absolute earliest. And the Cabinet has still yet to even discuss – let alone agree on – what form of relationship it wants the UK and the EU to have. The clock is ticking, and we are far away from anything resembling a deal.” Liberal Democrat leader Vince Cable renewed calls for a referendum on the final deal.

“Now comes the hard part,” he said.“The outcome of these talks will affect jobs, living standards and prices for years to come.”