Hammond sets out his approach to Brexit

Chancellor says the first priority is regulatory rules around cross-border business between the UK and the EU

Chancellor Philip Hammond says he will push for a business-friendly Brexit, as he outlined his approach for leaving the European Union in a speech at Mansion House.

According to the FT, Hammond confirmed he will seek a “lengthy” transitional period after leaving the EU.

Speaking yesterday to City leaders, he said: “We’ll almost certainly need an implementation period, outside the customs union itself, but with current customs border arrangements remaining in place, until new long-term arrangements are up and running.”

Hammond also suggested he was willing to accept some EU oversight as a trade-off for maintaining good access to the single market.

He said: “There are genuine and reasonable concerns among our EU colleagues about oversight of financial markets that will then be outside EU jurisdiction, but which provide a vast proportion of economically vital financial services to EU firms and citizens.”

Hammond said his approach would be guided by three principles.

He said: “First, we will need a new process for establishing regulatory requirements for cross-border business between the UK and EU. It must be evidence-based, symmetrical and transparent. And it must reflect international standards.”

Hammond adds: “Second, co-operation arrangements must be reciprocal, reliable and prioritise financial stability. Crucially, they must enable timely and co-ordinated risk management on both sides.”

“Third, these arrangements must be permanent and reliable for the businesses regulated under these regimes. Our departure from the EU is under way. But ensuring that it happens via a smooth pathway to a deep and special future partnership with our EU neighbours, will require every ounce of skill and diplomacy that we can muster.”