Brexit: Tory Cabinet 'accepts free movement will continue for years after Britain leaves EU'

The UK is prepared to maintain free movement for EU citizens for up to four years after Brexit, reports have suggested.

Theresa May is ready to offer free movement for two years, according to The Times, while The Guardian quoted "a senior Cabinet source" as saying the period could last for three or even four years.

Philip Hammond was said to be confident he has won support within the Cabinet for a transition to prevent disruption to business caused by a sudden "cliff-edge" move to new arrangements on 29 March 2019, when Britain is set to leave the EU.

Hammond has been pushing for a Brexit deal that prioritises "economic logic", but has been targeted in leaks by senior Conservative colleagues in an apparent bid to undermine him. There was no immediate response from Downing Street to reports Ms May is ready to see free movement continue beyond the due date for withdrawal from the EU. But she stressed her backing for an implementation period when speaking with business leaders who attended the first of a series of quarterly Downing Street forums on Brexit.

"The Prime Minister reiterated that the Government's overarching goal is for a smooth, orderly exit culminating in a comprehensive free trade deal with the EU, with a period of implementation in order to avoid any cliff-edges," a Downing Street spokesman said. One of the attendees at the Number 10 summit, Francis Martin of the British Chambers of Commerce, made clear that a transition period is a priority for business.

"Our research shows clear support among the business community for the UK to reach a comprehensive agreement with the EU, and for a transition period which will prevent firms facing a cliff-edge," Martin said. "The prospect of multiple, costly, adjustments to trading conditions is a concern for many, so starting discussions on transition arrangements as soon as possible would go a long way to boost business confidence."

The EU's chief negotiator Michel Barnier demanded clarification on Britain's position on the financial settlement by the next round of talks in August. AGENCIES