Britain's Finance Minister Philip Hammond said Monday that a transitional arrangement could be "helpful" to smooth the country's exit from the European Union.
The government intends to begin the formal exit process by the end of March, starting the clock ticking on a two-year deadline to negotiate its departure and future relationship with the bloc.
Hammond said there was an "emerging view" that "having a longer period to manage the adjustment between where we are now, as full members of the European Union, and where we get to in the future... would be generally helpful".
It "would tend towards a smoother transition and would run less risks of disruption including, crucially, risks to financial stability which must be a fairly real concern", he told parliament's Treasury committee.
This view was held by businesses, regulators, "thoughtful politicians" and civil servants on both sides of the English Channel, he said.
The European Commission's chief Brexit negotiator, Michel Barnier, warned last week: "As we don't know what the UK wants and is waiting for, it's difficult to imagine a transitional period."
Hammond conceded: "We can only get to a situation where we have a transition if there is a genuine meeting of minds on both sides of this negotiation."
The CBI business lobby group warned last month of a "cliff-edge" where Britain leaves the EU after two years without a new trading arrangement in place.
Hammond said: "It's not just the business sector, it's the government sector that has had to think about how long it takes to make changes, hire people, train people, introduce IT changes."
He noted that the possible reintroduction of border and customs checks would require many more officials to be trained, a process that would cost money and time.
- Government split on approach to Brexit -
Hammond campaigned for Britain to stay in the EU and, while backing the government's promise to implement the June referendum vote to leave, is widely viewed as pressing for a "soft" Brexit.
Others in Prime Minister Theresa May's cabinet, such as international trade secretary Liam Fox, want a swift, decisive break with Brussels.
Brexit minister David Davis said last week that Britain would seek to agree both its withdrawal and a future trade deal with the EU within the two-year timeframe.
However, that goal is under pressure after Barnier said that the negotiations must be completed within 18 months to allow time for ratification.
Hammond's comments came ahead of a House of Lords report released on Tuesday, which said Britain needs to draw up transitional arrangements to carry on trading with the EU after Brexit while they negotiate a long-term trade deal.
"Although this would require clarity on the principles of what the UK is transitioning to, it would not delay the UK's withdrawal.
"But it would safeguard current trade and provide adequate time for negotiations," the joint report by the House of Lords' EU Internal Market and External Affairs Sub-committees said.
Negotiating a comprehensive free trade agreement with Brussels would not be possible within the two-year period set out for Brexit talks, the report said.
AFP
Tue Dec 13 2016
HAMMOND: "We can only get to a situation where we have a transition if there is a genuine meeting of minds on both sides of this negotiation." / AFP Photo / File
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.