The CBI welcomes this opportunity to submit evidence to the Treasury Select Committee’s inquiry on EU Exit and transitional arrangements.
The business community is committed to making a success of Brexit. Through thousands of conversations with companies and trade associations in the six months after the vote to leave, the CBI compiled six principles to guide policy makers in achieving this aim. More details of these can be found in the report.
Making a Success of Brexit. This response will focus primarily on one of those principles: achieving a smooth exit from the EU, avoiding a “cliff-edge” that causes disruption.
To provide the committee with views on the design and desirability of “transitional arrangements”, the CBI has undertaken a detailed consultation with its members. Since the Prime Minister’s landmark Lancaster House speech, we have held roundtables with businesses in different regions and nations of the UK, detailed conversations with individual companies, and a written survey of members.
In this submission, we take the conclusions of this consultation to argue:
1. Business wants to see the successful negotiation of a comprehensive UK-EU free trade agreement that
includes “transitional arrangements”.
2. An implementation phase will be necessary once a deal has been struck, to allow companies time to
3. An implementation phase will also be required for regulators to adapt to changes in their role and scope,
and for Governments to bring in any new legislation
4. The greater the change agreed, the longer the implementation phase required.
5. A temporary interim arrangement will be required if a deal cannot be struck within the Article 50 period.
6. The purpose of both an implementation phase and a temporary interim arrangement is to provide the
smooth and orderly Brexit both the EU and UK have committed to.
7. In addition to “transitional arrangements”, there are many other steps the Government can take to
provide business with more confidence