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Businesses Need Clarity on Transition Deal by End of Year

Commenting on the Prime Minister's speech, techUK's Antony Walker comments on urgency of agreeing transitional deal.

Commenting on the Prime Minister, Theresa May’s speech in Florence, techUK’s Deputy CEO, Antony Walker, said:

“The Prime Minister’s proposal for a transition deal of “about two years” provides some clarity to UK tech businesses that have been planning for a  Brexit cliff-edge in 2019. It is welcome that such a transition is intended to be along the same rules as the current UK/EU relationship.

However, tech companies have consistently said that a transition period of at least three years would be necessary. If the Government is committed to a two year transition, then it must adjust its, and the public’s, ambitions accordingly.  Creative solutions are important, but the time to deliver them is rapidly disappearing. 

“In reality a two year transition would provide very little time to meet the Government’s objective of a smooth Brexit. It leaves only a small window to allow businesses to implement the changes they will need to make based on the final deal and places an unrealistic timeframe on efforts to put in place new technologies to reduce friction in customs and immigration post-Brexit.

“While further clarity around the Government’s wider position is welcome, the commitment to a two year transition makes it even more important that rapid progress is made in the negotiations. The Prime Minister's spending offer is a sensible and pragmatic step to achieve this. Both the UK and the EU will need to give ground to enable discussion on the future relationship to begin in earnest and to formally confirm the transition period. The negotiations that were once viewed as a marathon now must be a sprint."

 

Channel website: http://www.techuk.org/

Original article link: http://www.techuk.org/insights/news/item/11432-businesses-need-clarity-on-transition-deal-by-end-of-year

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