Theresa May states the UK’s case for a 2-year Brexit strategy

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Theresa May states the UK’s case for a 2-year Brexit strategy

Prime Minister Theresa May today extended a conciliatory arm of partnership to EU leaders, as she announced the UK’s offer of a 2-year transitional Brexit period.

Speaking in Florence, Prime Minister May spoke of “renaissance” as she outlined timescales for the UK’s full departure from the European Union, which would see an implementation period of two years after the date that the UK officially leaves the EU in March 2019.

This, Mrs May asserted, will deliver much-needed time for businesses to fully adjust to the changes “in a smooth and orderly” way. It will also help to eliminate much of the doubt and speculation that have circulated for many months, providing a sense of certainty at last, she added.

Mrs May stated that the proposed implementation period should see business access to markets continue and that “business would welcome the certainty this would provide”.

Whilst reinforcing the important and “special relationship” that the UK enjoys with its European partners, Mrs May described the UK’s business future as one of a “global free trading nation”.

In another nod towards business, Mrs May gave words of reassurance to the thousands of EU citizens living and working in the UK, addressing “EU citizens who have made the UK their home” with the following statement:

“We want them to be able to stay and have the same rights as they have now,” however, she indicated that she would want similar rights to apply to UK citizens living in EU states and that negotiations continue on this issue.

Maintaining working rights for the thousands of EU citizens contributing to the UK economy and businesses would once again provide a sense of what Mrs May described as “certainty”.

For the buy-to-let market, many landlords have been waiting to see what impact, if any, Brexit would have on their businesses and potentially on the economy. Any change in interest rates could affect the cost of borrowing, so today’s speech offers much-needed clarity on the direction that Britain hopes Brexit negotiations will take.

Mrs May’s speech concentrated on future partnerships rather than severance – and the importance of building a mutually acceptable legacy for both parties, providing “a new era of cooperation and partnership between the European Union and United Kingdom”.

She said that a successful final agreement is in the interests of both the UK and the remaining EU countries.

If we can do that, then when this chapter of our European history is written, it will be remembered not for the differences we faced, but for the vision we showed; not for the challenges we endured but for the creativity we used to overcome them; not for a relationship that ended but a new partnership that began.

"Mrs May asserted that it was "in all of our interests for our negotiations to succeed… so I believe we share a profound sense of responsibility to make this change work smoothly and sensibly, not just for people today but for the next generation who will inherit the world we leave them.

Mrs May’s announcement did not focus on the minutia of the deal but she has said that the UK would honour commitments made during its membership of the European Union, and she made it clear that many points are under negotiation, which could last right up to the March 29th, 2019 date, when the UK leaves the Union.

However, the Government hopes that it’s “open and generous" offer today will help to break the stalemate that has developed over Brexit negotiations.

Commenting on Mrs May’s speech this afternoon, Andrew Turner, chief executive at Commercial Trust Limited, commented:

“Finally Theresa May shows signs of much needed leadership and has put forward a Brexit solution that can work for the UK. This is good news for landlords. I hope that the EU accepts the terms she has proposed so that the transition process can push forward and a newfound stability craved by the country can prevail.”

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.