We will need an interim deal after Brexit, says Hammond

Philip Hammond said that many people believe a longer transition period would be beneficial to all
Philip Hammond said that many people believe a longer transition period would be beneficial to all
SCHALK VAN ZUYDAM/AP

Philip Hammond has conceded that there is likely to be a transition period after formally leaving the European Union in 2019 to ease Britain’s exit.

The chancellor said that a temporary arrangement following the two years of Article 50 negotiations was in both the UK and the EU’s interest to protect businesses from a sudden, damaging rupture 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,” he said.

The chancellor’s comments put him at odds with David Davis, the Brexit secretary, who told financial institutions last month that he was “not really interested”