Business chiefs unite to demand a Brexit transition deal

Boris Johnson today called on Brussels to ‘get on with it’ as business lobby groups demanded an urgent Brexit transition deal.

The Foreign Secretary said last week’s EU summit had been ‘more positive’ than he had expected after EU leaders agreed to draw up their own position on future trade.

But Mr Johnson used a speech at Chatham House to pile pressure on Brussels to make rapid progress.

Five major business lobby groups united today to warn Brexit Secretary David Davis that time is running out to set the rules for how trade will work from March 2019.

Downing Street today declined to comment on the leak of a private letter but said Government policy was to agree an ‘implementation period’ as soon as possible.

Ex-Ukip leader Nigel Farage today warned Britain voted for Brexit and not a transition. 

Boris Johnson (pictured in London addressing Chatham House today) called on Brussels to ‘get on with it’ as business lobby groups demanded an urgent Brexit transition deal

The Foreign Secretary (pictured during today's speech) said last week's EU summit had gone 'better' than he had expected after EU leaders agreed to draw up their own position on future trade

The Foreign Secretary (pictured during today’s speech) said last week’s EU summit had gone ‘better’ than he had expected after EU leaders agreed to draw up their own position on future trade

Britain will leave the European Union on March 30, 2019, two years after the Article 50 letter to trigger Brexit was sent.

Answering questions about Brexit after a foreign policy speech this morning, Mr Johnson refused to spell out any further offer Britain should be making. 

Talks in Brussels have stalled over how much the UK will pay in exit charges, the rights of EU citizens and resolving the Irish border.

Mr Johnson said Mrs May had made a ‘very good offer in her Florence speech’.

And he warned: ‘I suggest to our friends in Brussels: now is the time to get on with it.’   

Ministers have backed a ‘stand still’ transition where all rules stay the same for at least two years after Brexit but nothing has been agreed or signed. 

There are fears major businesses will relocate their business to Europe to ensure they keep access to the single market and would not return if or when a new UK-EU trade deal is established. 

The CBI, run by Director General Carolyn Fairburn (file image), is one of five major business lobby groups to call publicly for an urgent transition Brexit deal

The CBI, run by Director General Carolyn Fairburn (file image), is one of five major business lobby groups to call publicly for an urgent transition Brexit deal

The British Chamber of Commerce (run by Adam Marshall, left) and the Institute of Directors (director general Stephen Martin, right) also joined the call on Brexit  

The private letter, which is believed not to have been sent yet, has been signed by the CBI, British Chambers of Commerce, manufacturing trade body EEF, the Institute of Directors and the Federation of Small Businesses.

It said: ‘Agreement (on a transition) is needed as soon as possible, as companies are preparing to make serious decisions at the start of 2018, which will have consequences for jobs and investment in the UK.

‘And the details of any transitional arrangement matter: the economic relationship the UK and EU has during this time-limited period must match as close as possible the status quo.’

The letter added: ‘It is vital that companies only have to undertake one adjustment as a result of the UK’s withdrawal, not two – and that businesses, the UK Government and authorities in the EU have enough time to make the changes needed to deliver Brexit successfully.’

Commenting on behalf of the Open Britain campaign group for close ties with the EU, Labour MP Chuka Umunna said: ‘Business groups are understandably alarmed by the Government’s lack of progress in the talks.

‘And the full-blown Cabinet disagreements over how a transition period would work make it even less likely that a deal will be reached.

There are fears major businesses will relocate their business to Europe to ensure they keep access to the single market and would not return if or when a new UK-EU trade deal is established

There are fears major businesses will relocate their business to Europe to ensure they keep access to the single market and would not return if or when a new UK-EU trade deal is established

‘No deal would be devastating for business, for people’s jobs and wages and for national security. The Prime Minister needs to face up to the reality of the situation, stop pandering to the ideological zealots driving the country towards a cliff-edge, and commit to staying in the Single Market and Customs Union.’

A spokesperson for the Department for Exiting the European Union said: ‘The prime minister proposed a strictly time-limited implementation period in her Florence speech and was clear in her article 50 letter that agreeing this principle early in the process would help minimise unnecessary disruption to businesses in both the UK and the EU.

‘We are making real and tangible progress in a number of vital areas in negotiations. However, many of the issues that remain are linked to the discussions we need to have on our future relationship.

‘That is why we are pleased that the EU has now agreed to start internal preparatory discussions on the framework for transitional arrangements as well as our future partnership.’

Theresa May won no more than a commitment the EU will start drawing up its own position on future trade at a summit last week (pictured is the PM's press conference at the conclusion) 

Theresa May won no more than a commitment the EU will start drawing up its own position on future trade at a summit last week (pictured is the PM’s press conference at the conclusion) 

 

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