PM: Two-year deadline for negotiations possible

BRITAIN could remain in the EU for an “implementation period” to give businesses and civil servants time to adapt to the new arrangements, Theresa May has indicated.

The Prime Minister signalled to MPs that the UK could take advantage of a clause in Article 50 of the EU treaties, which would allow withdrawal to be delayed beyond the two-year deadline for the conclusion of negotiations.

Her remarks came as Andrew Tyrie, chairman of the Commons Liaison Committee, warned that major companies could start relocating staff to continental Europe soon unless they were assured the UK was not facing a “cliff-edge” departure from the EU in 2019.

Mrs May said a deal should be secured within the two-year period, but it “may be the case that there are some practical aspects, which require a period of implementation thereafter”.

She also appeared to confirm that Whitehall was preparing for the “worst-case scenario” of Britain leaving without an agreement on its future relationship with the remaining 27 nations in the bloc.

However, she suggested that, in such a scenario, it would be the other 27 EU member states that would want to extend the negotiation period to try to reach an acceptable agreement.

“We are looking at a variety of scenarios that could come forward in relation to the negotiation, the deal, the timing and what other opportunities would be there,” she said.

Meanwhile, the PM has made it clear she wanted the negotiations with Brussels on a new postBrexit trade deal to take place in parallel with the divorce talks.