Brexit buffer: Mark Carney pushes to stay in Single Market until at least 2021

 
Hayley Kirton
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Governor of the Bank of England Mark Carney Presents The Quarterly Inflation Report
The Bank of England governor is set to stand down in 2019 (Source: Getty)

Mark Carney is working on plans for a Brexit buffer period, to allow the UK to stay in the Single Market for at least two years after leaving the EU.

Many in the City have voiced concerns their businesses are facing a cliff edge after the UK leaves the EU, where rights currently enjoyed would be suddenly pulled away, giving them very little time to react.

Government has given very little away on its thinking around the matter, refusing to provide a running commentary on anything negotiation related. However, last week, Prime Minister Theresa May noted she was aware businesses were worried they would suddenly lose a slew of rights on Brexit day and was keeping this in mind when entering talks.

Read more: A third of City workers say their employer might move abroad because Brexit

Now, the Sunday Times has reported Carney, who is set to stand down as Bank of England governor in June 2019, has held several private meetings and dinners over the last fortnight to encourage business leaders to push for a period of continuity post-Brexit.

The Bank of England did not immediately respond to City A.M.'s request for comment.

Carney did not exactly foster favour among the Brexiteers in the run up to the referendum. Critics slammed the governor for his pre-vote cautions that a Leave outcome could plunge the UK into a recession, warning that Carney was in danger of becoming too politically involved.

Read more: The UK is now odds-on to remain in the EU until 2020

The Bank of England governor is not the only one who is calling for a transition period to be put in place to allow businesses enough time to put their house in order. RBS chairman, and former deputy governor of the Bank of England, Sir Howard Davies has urged that important rights, such as passporting, to be phased out rather than suddenly cut off.

Meanwhile, the British Bankers' Association (BBA) used its Autumn Statement submission to urge the chancellor to do what he could to avoid disruption for businesses.

Anthony Browne, chief executive of the BBA, has previously warned banks had their hands "quivering over the relocation button", as they were planned for the worst in absence of a clear message about government's thinking. However, Browne has since also urged the industry to stop "grieving" over the vote's outcome.

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