The House of Lords EU Select Committee has today launched an inquiry into what a Brexit transition period might cost, and what the UK stands to lose if no agreement is reached.
The “Brexit: Deal or no deal?” inquiry will examine the legal basis of any transition period, as well as the likely monetary cost to the UK and the implications of a failure to reach consensus with the EU.
The transition period, as outlined by Prime Minister Theresa May in her speech in Florence last week, is designed to act as a bridge between the UK and EU's current relationship and their more independent statuses when the UK officially leaves in March 2019.
May conceded in last Friday's speech that “neither the UK – nor the EU and its member states – will be in a position to implement smoothly many of the detailed arrangements” which Brexit will entail by 2019.
The Select Committee will look at whether that speech is a good foundation on which to base negotiations between the UK and EU, what hurdles must be overcome to form an agreement, what the effects of a “no deal” would be and what a transition period should look like.
It is asking any stakeholders to submit views on these issues by 26 October.
The EU Select Committee will have its first meeting on the inquiry on 10 October, where it will hear from Leave Means Leave co-chair John Longworth, and Ruth Lea, an economic adviser at Arbuthnot Banking Group.