Philip Hammond suggests UK could effectively stay in the EU for five extra years with Brexit transitional deal

PHILIP Hammond has signalled that Britain must strike a long Brexit transitional deal to keep free trade access for as long as five years.

The Chancellor also insisted that business bosses’ fears of a sudden cliff edge exit is already seeing investment and decision making dry up.

Mr Hammond’s latest intervention to push for a softer Brexit risks infuriating Tory Brexiteer hardliners.

Some Leave-backing Tory MPs want to limit any interim arrangement with the EU to two years maximum.

Quizzed on BBC Radio 4’s Today programme, Mr Hammond said a transition period should of four years or longer was a possibility that “remains to be negotiated”.

The Chancellor said: “We are leaving the European Union but when you buy a house you don’t necessarily move all your furniture in on the first day you buy it. This is a process.

“We will do that via process so we will avoid cliff edges and disruption to business, disruption to the lives of citizens. That is in everybody’s interests.”

The Treasury boss also let slip that he does have rows with Theresa May, admitting: “We have discussions on different issues, who wouldn’t?”.

But he tried to play down claims that that the PM had planned to sack him after the election.

Mr Hammond said: “We get on very well. This is a piece of popular mythology that has been peddled by the media.

“I have known Theresa May for many, many years. We work very well together.”