A senior Conservative MP has criticised the government for failing to make progress on a transition deal to smooth Britain’s exit from the EU, warning that businesses could relocate jobs outside of the UK without urgent action.

Nicky Morgan, the chair of the Commons Treasury select committee, said businesses were “crying out” for details of a proposed period to cushion Britain’s withdrawal from the EU from March 2019, calling on ministers to swiftly resolve their differences and reach a deal with Brussels or face damaging consequences.



Failure to reach an agreement with the EU at a crunch meeting in less than a month’s time would be “economically damaging and [would] dramatically diminish the value of whatever [Brexit deal] is eventually negotiated”, she said.

“In the absence of clarity, they will have no choice but to prepare for the one eventuality that they can understand: the worst-case scenario.”

Morgan warned in December that businesses could start to move jobs and activity early in 2018 alongside the launch of a Treasury select committee report outlining the risks involved from a no-deal Brexit.

On Tuesday she attacked a government response to the report for doing little more than advising businesses to “understand how [no-deal Brexit] may affect their business and explore [the] potential impacts”.



She said that statement was “extraordinary” at a time of pervasive uncertainty. “Firms can hardly begin to understand change until they know what it consists of,” she said. “Brexit uncertainty for businesses still looms large.”

A prominent campaigner for remain, the former education secretary has used her position at the helm of the Treasury select committee since losing her cabinet position to press the government over its plans for leaving the EU – often acting as a voice for business in parliament in her efforts to prevent a no-deal Brexit.

She was one of a number of Tory MPs labelled by the Daily Telegraph as a “Brexit mutineer” although she has said she is not trying to block Britain leaving the EU.



Theresa May committed in her Florence speech to what she described as an implementation period of “about two years”, after coming under intense pressure from business leaders and prominent remain MPs.

Major companies and City banks have warned they need time to adapt to whatever final arrangement is agreed between the UK and Brussels, and that failure to agree a transition deal would lead them to relocate jobs overseas.



Downing Street was forced last week to insist the Brexit transition period will not be open-ended, after leaked documents revealed an attempt to challenge a 21-month limit suggested by the EU.

This sparked tensions with pro-Brexit backbenchers just before May held an awayday to thrash-out the government’s position. The EU’s chief negotiator, Michel Barnier, has claimed that 31 December 2020 is the most practical end date for the transition.