Theresa May yesterday suggested that the UK would still be subject to the jurisdiction of the European Court of Justice and accountable to new EU laws during a transition period.
Although this is not ideal, we recognise the pragmatic steps that must be taken to achieve the best deal possible - a clean Brexit - once the transition period ends.
As Michael Gove said last night, this pragmatism will allow the UK to ‘secure maximum freedom to diverge from EU in end state’, whilst Boris Johnson wrote that it will enable Britain to ‘prepare properly for Brexit’.
However, Mrs May must ensure that after the transition period ends, the UK is not answerable to the ECJ and has taken back full control of our laws, borders, money and trade.
The Prime Minister should also make clear that the transition is no longer than two years so that by the time of the next General Election, the British people know that the sovereign government they elect will be able to enact all their policies without risk of interference from EU law.
Government right to prepare for no deal
It is right that the Government prepare for a ‘no deal’ scenario. It's therefore encouraging to read that the new customs paper includes provisions to deal with what would happen if the EU refuses agree to a deal (BBC, October 2017, link).
We hope that we will reach a good deal with our European friends. However if we want to get a good deal, we have to be willing and able to walk away from the negotiations.
It is only prudent for the Government to plan for all eventualities. That's why it's very reassuring to read that the Chancellor could look to provide more support for ‘no deal’ contingency planning in the new year (The Sun, October 2017, link).
Good economic news
Retail sales grew by 2.3% in September compared to the same month a year earlier, according to a report by the British Retail Consortium and KPMG (Times, October 2017, link)
The ONS’s latest Index of Production has recorded a 0.9% increase in production in the three months to August, with the largest contributor to this growth being from manufacturing. Year-on-year, production output has risen by 1.6% with manufacturing increasing by 2.8% (ONS, October 2017, link).
There is more evidence of the strength of London’s M&A sector as car parts maker TI Fluid Systems has revived plans for a float in London. Petrol station retailer MRH has also hired advisors for a potential $1.5bn debut in London (Telegraph, October 2017, link).