The United Kingdom and the European Union have agreed terms for a transition period after Brexit.
Brexit Secretary David Davis said the 21-month transition deal, which will end on December 31 2020, will bring reassurance and stability to UK businesses.
Commenting on the announcement, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “Finalising transition period terms will gift some certainty to the UK small business community and protect it from a damaging cliff-edge moment. Wherever possible, small firms want only one set of rule changes that take effect from the end of 2020. It’s good to see an agreement which will largely mean business owners can continue to operate broadly as they do now until 31 December 2020. Today’s announcement will make it that much easier for firms to plan, grow, trade, invest and hire.
“Confirmation that the UK will have the freedom to sign and ratify new trade deals during the transition period marks a critical step forward. The Government must seize the opportunity to establish new agreements with the likes of the US, China and Australia that can be implemented immediately after the transition period ends, whilst also establishing a new deep and comprehensive trading relationship with the EU. Nine in ten exporting small firms have ties to the single market, so it’s vital that we maintain maximum possible access to Europe post-Brexit.