Chancellor: Transitional deal expected within three years of leaving EU

Elias Hubbard
July 29, 2017

Lewis, however, did not provide details on how the United Kingdom government is planning to manage the issue of migration after the Brexit.

Mr Hammond said the United Kingdom would "leave the customs union and the single market on 29 March 2019" but that there was broad agreement in the Cabinet that a transitional arrangement would need to be put in place to avoid a Brexit "cliff edge".

The Financial Times reported earlier on Friday that Hammond hoped for an "off-the-shelf" transition deal with the European Union that would preserve existing trading arrangements for at least two years, followed by a further implementation phase.

In a separate development, United Kingdom home secretary Amber Rudd has sought to reassure European Union nationals that they will still be able to come to the United Kingdom to work during the transition phase after Brexit, although they will be required to register their details on arrival.

"The government needs to explain why this study wasn't commissioned a year ago, directly after the referendum", said lawmaker Ed Davey, of the pro-EU Liberal Democrat party.

The Foreign Secretary, who is now in Government visit to Australia, instead extolled "the value of immigration and the value of having an open approach to it".

"I say what I have always said: as a society, the City of London benefited massively from having talent come to our shores. That is all I think people want to see".

The Home Office asked the committee to focus on patterns of EU and European Economic Area migration, looking at regional distribution, skill levels, industry sectors and the role of the self-employed, part-time, agency, temporary and seasonal workers.

Rudd told the MAC that migration benefits the United Kingdom, economically, culturally and socially, "but sharply increased levels of net migration since 1997, from both the European Union and beyond, have given rise to public concern about pressure on public services and wages".

In an attempt to ease concerns among business leaders, Ms Rudd stated that an implementation phase would be brought in from 2019.

And it is estimated that there are some 1.6 million United Kingdom citizens living elsewhere in the EU.

A transitional deal is expected to be completed within three years of the United Kingdom leaving the European Union, according to the Chancellor. "When we leave, that, by definition, ends".

In an interview with the BBC's Today Program, Lewis said: "Free movement of labor ends when we leave the European Union in the spring of 2019".

But he added: "What people in this country will want to know is that the day after we leave the European Union they are still able to go about their business".

The EU's chief negotiator Michel Barnier has also previously warned that Brexit negotiations, which will include the UK's new migration arrangements with the bloc, will need to be wrapped up by October 2018.

Other reports by Click Lancashire

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