Phillip Hammond hints at future transition period ‎

Chancellor Philip Hammond has admitted that a transition period is likely after the UK has formally left ‎the EU in 2019 to help ease the exit process. The Chancellor said that a temporary arrangement ‎following the two years of Article 50 negotiations was in the interests of both the UK and the EU in ‎order to protect businesses from a sudden break in trade relations – “there is an emerging view among ‎business, among regulators and among thoughtful politicians that having a longer period to manage ‎the adjustment would be helpful, would tend towards a smoother transition and would run less risk of ‎disruption.” These recent comments contrast starkly with those of David Davis, the Brexit secretary, ‎who told financial institutions last month that he was “not really interested” in a transitional ‎arrangement. The Prime Minister has indicated that she is in favour of a temporary deal to avoid a ‎‎“cliff-edge” exit for business but a spokesperson later said Theresa May’s words had been ‎misinterpreted. The Chancellor’s recent comments will be welcomed by many banks and financial ‎institutions which have been pressing hard for a transitional deal in order to avoid the need to draw up ‎emergency contingency plans.‎