Sunday 27 November 2016 6:34 pm

That's not what we meant: Experts back a Brexit buffer, but fear Mark Carney might have the wrong idea

Mark Carney has got a partial thumbs up for his Brexit buffer idea.

Many in business are concerned Brexit could see them facing a cliff edge scenario, where valuable rights are pulled away from them overnight, and have been calling on government to consider putting transitional arrangements in place. 

However, the Sunday Times has reported that the Bank of England governor has urged business leaders to call for a period of continuity, and is drafting a plan to have the UK remain a member of the Single Market until 2021.

Read more: Bank of England's Brexit strains lain bare

Allie Renison, head of Europe and trade policy at the Institute of Directors, noted that many businesses, not just in the City, were in desperate need of transitional arrangements. 

"Given firms will not know the exact details of our new formal trading arrangements with the EU until after the negotiations have been concluded, and the fact that a 'bespoke' deal naturally constraints completely comprehensive contingency planning, it is essential that they have a sufficient period of time thereafter where continuity is maintained as much as possible to have time to sufficiently prepare for any changes," Renison said.

Read more: Uncertainty not totally to blame for economic problems, says MPC member

However, Shanker Singham, chairman of the Legatum Institute's special trade commission, felt the UK could shoot itself in the foot if it fought to extend membership to the Single Market, as this would prevent it from forging new trade agreements with other potential partners and they might not be willing to wait around forever.

"They'll move on to other things," Singham added, noting that clinging onto Single Market membership would effectively be nothing more than "pushing the can down the road".