Hammond confirms UK preference for transitional Brexit deal

UK chancellor Philip Hammond has confirmed that the government’s Brexit negotiation team will seek a transitional deal which could be in place for up to three years after Britain leaves the EU.

The UK could retain access to the single market and allow free movement for EU citizens until 2022 if such a transitional agreement is put in place.

Speaking with BBC Radio 4, Hammond said that when Brexit finally arrives in March 2019 it is not likely to be a complete separation immediately.

“There will be a process between the date we leave the European Union and the date on which the new treaty-based arrangements between the UK and the European Union which we hope and expect to negotiate come into force,” said Hammond.

"I can’t tell you a precise period of time because we haven’t had that discussion yet"

“I can’t tell you a precise period of time because we haven’t had that discussion yet. It will be driven by technical considerations, how long it will take us to put the necessary arrangements in place. People have talked about a year, two years, maybe three years.

Brexit negotiations between the UK and the EU began earlier this year, with the prospect of a transitional period likely to include a restriction on Britain signing new trade deals with other states.

The Chancellor added: “The important point is that we are able to get started on that process and during a transition period when we would hope to have continued access to the European market it may be that during that period we don’t bring those new agreements into force. But it will take us time anyway to negotiate them.”