Treasury committee calls for Brexit certainty

A report published by the Treasury committee has concluded that an agreement between the UK and European Union on transitional arrangements was urgently required.

Draft texts published by both the UK government and the EU have shown that a transition has not yet been agreed.

Nicky Morgan MP, chair of the Treasury committee, said: “Businesses are now crying out for the certainty of having a transition period secured.

“It is vital that remaining disagreements over the duration and governance of the transition period are resolved quickly.”

Morgan added that a failure to reach agreement in the March European Council would be economically damaging, and dramatically diminish the value of whatever is eventually negotiated.

“There is less pragmatism on display from the government when it comes to the long-term relationship between the UK and the EU.

“In this environment of pervasive uncertainty, it is extraordinary that the government – in its response to the committee’s report – is advising businesses to ‘understand’ and ‘explore potential impacts’ of ‘regulatory change’ arising from Brexit.

“Firms can hardly begin to understand change until they know what it consists of.

“Brexit uncertainty for businesses still looms large.”

Morgan suggested that businesses will have no choice but to prepare for the worst-case scenario of a trade relationship based on World Trade Organisation (WTO) commitments.

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