Britain may not leave the EU in 2019 after all as Theresa May bids to avoid ‘cliff edge’ for businesses, No10 reveals
The PM also warned firms to clean up their act and 'restore faith in capitalism' by embracing Brexit
THERESA May has revealed she will push the EU for a temporary halfway house Brexit to stop a “cliff edge” for businesses.
The PM suggested she will ask Brussels for a transitional deal to stop a sudden collapse in trade with the other 27 members.
Senior figures - including former Foreign Secretary William Hague – have warned that Brexit talks’ tight two year timeline is not long enough to finalise a complicated EU divorce as well as a new trade deal.
Mrs May’s suggestion came as nervous business bosses called on her for reassurance on what will happen and when.
Replying to CBI president Paul Drechsler’s plea for “clarity and a plan”, the PM said: “I understand the point Paul has made. People don’t want a cliff edge, they want to know with some certainty how things are going to go forward.
“That will be part of the work that we do in terms of the negotiation that we are undertaking with the European Union.”
No10 initially raised the prospect of Mrs May even trying to extend the timeline for the ‘Article 50’ exit talks, delaying Brexit.
But after initial confusion, Downing Street last night confirmed we will still leave the EU on Mrs May’s timeline, “by the end of March 2019 as the latest point”.
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The prospect of a transitional deal left Leave campaigners split, with some Tory MPs backing the PM and others claiming it was a betrayal.
Leading Tory MP Brexiteer Steve Baker said: “We’re doing something profoundly historic.
“The priority is to get this thing right, and if they need more time than they should get it.”
Former Justice minister Dominic Raab added: “The Prime Minister is right to retain some flexibility on this.
“What matters is getting the best deal for Britain, not the technical process.”
But Co-Chair of the UKIP-backed Leave Means Leave group Richard Tice said: “No EU deal is better than a bad deal.
“A transitional deal will fuel more uncertainty and leave Britain in limbo.”
Mrs May also delighted business bosses by saying she would spell out the detail of her Brexit plans whenever she could, once that no longer prejudiced the negotiations.
The EU Commission’s chief negotiator Michel Barnier snubbed Brexit Secretary David Davis yesterday by publicly refusing to discuss Britain’s EU exit.
After the Cabinet minister’s first meeting with him, the fomer French foreign minister tweeted: “No negotiation without notification. My work is now focused on EU27”.
A NEW APPROACH: Theresa May's speech to the CBI
This is an extract from the section of the PM's speech on Brexit:
The decision of the British people on 23rd June gives us a once-in-a-generation chance to shape a new future for our nation: the chance to build a stronger, fairer country.
That’s the kind of change people voted for – not just to leave the European Union, but to change the way our country works – and the people for whom it works – forever.
And I am determined that we will deliver the change they need.
So we will do things differently. Not carrying on with ‘business as usual’, but opening our minds to new ways of thinking – those of us in government, and those in business too.
For government, it means not just stepping back and leaving you to get on with the job, but stepping up to a new, active role that backs British business and ensures more people in all corners of the country share in the benefits of your success.
For business, it means doing more to spread those benefits around the country, playing by the same rules as everyone else when it comes to tax and behaviour, and investing in Britain for the long-term.
All things that I know the vast majority of businesses do already. Not just by creating jobs, by supporting smaller businesses, training and developing your people, but also by working to give something back to communities and supporting the next generation.
I have no doubt at all about the vital role business plays – not just in the economic life of our nation, but in our society too. But as Prime Minister, I want to support you to do even more.
That is why, when the Chancellor delivers the government’s Autumn Statement on Wednesday, he will lay out an agenda that is ambitious for business and ambitious for Britain.
He will commit to providing a strong and stable foundation for our economy: continuing the task of bringing the deficit down and getting our debt falling so that we can live within our means once again.
He will build on the actions that our independent Bank of England has already taken to support our economy.
And he will do more to boost Britain’s long-term economic success, setting out how we will take the big decisions we need to invest in our nation’s infrastructure so that we can get the country – and business – moving.
And he will show how we will do everything possible to make the UK outside the EU the most attractive place for businesses to grow and invest.