Boulger: Shorter Brexit transition period is good for businesses
Having a shorter transition period when leaving the EU is a good thing because it will force businesses to plan accordingly, John Charcol senior technical manager Ray Boulger has said.
The EU said the transition period after the UK leaves the EU should not continue beyond the end of 2020.
The transition period is the temporary period after the UK leaves the EU before the final arrangements start. The UK signalled that the temporary arrangement should last for about two years after Brexit in March 2019.
Ray Boulger, senior technical manager of John Charcol, said: “From a business point of view, certainty is important so the sooner it’s completed the better, so businesses can plan accordingly.
“And having a deadline three months earlier puts pressure on negotiations and should mean a deal is struck quicker so it’s definitely a good thing.
“While there’s uncertainty, businesses make plans for what may or may not happen, taking time and money. And some decisions may not have been needed to be made.”
The European Commission’s guidelines state that the UK should stay in the European customs union and single market during the transition phase.
The EU said: “The transition period needs to be clearly defined and precisely limited in time.
“The commission recommends that it should not last beyond 31 December 2020.”
This date marks the end of the EU’s seven-year budget cycle.