Brexit minister David Davis pledges to do '˜everything necessary' to maintain stability

In his first Parliamentary appearance since his being elected to chair the Brexit committee, the Leeds Central MP Hilary Benn has pressed ministers to offer new “transitional” guarantees to British business.

The Labour MP warned that uncertainty around post-Brexit trade relations with the EU remain “the major concern” for industry, and called on Government to commit to a period of adjustment.

His comments echo similar appeals from international business leaders, who have proposed a “transitional period” to allow firms to adapt to the post-EU landscape.

They also come amid growing speculation about membership of the Single Market, as experts warn withdrawing from the trade bloc could bring about a 4.5% drop in GDP.

Addressing Brexit seceretary David Davis in the Commons yesterday, Mr Benn claimed that establishing some form of transitional arrangement is “absolutely fundamental” for a smooth exit from the EU.

He suggested the Government should offers further assurances on trade and regulation, or risk companies ”tak[ing] decisions” to secure their future.

Mr Davis replied that the stability of British and European financial markets is “absolutely central” to his department’s work.

He pointed out that the passage of the Great Repeal Bill will make the changeover from EU membership more manageable, and stressed that the Government “will do everything necessary” to maintain market stability.

A number of MPs also tried to draw out more details about the Government’s position on Single Market membership.

Shadow Brexit minister Keir Starmer asked Mr Davis to confirm that Prime Minister is not intending to withdraw from the customs union.

Economists have estimated this would could lead to a 4.5% fall in UK GDP by 2030, as well as clogging up trade at British ports. But Mr Davis would only state that the Government is “taking [its] time to come to a conclusion”.

The Shipley MP Philip Davies, also warned that many of the conditions surrounding Single Market membership “[fly] in the face” of what people voted for in the referendum.

He went on to suggest that it would be “economic suicide” on behalf of the EU not to agree some form of tarrif-free trade dealwith the UK.

But again, Mr Davies kept his answer minimal, saying only that the Government’s aim is a deal “that is good for the United Kingdom and good for the European Union”.

He took a more hostile tone in response to the Darlington MP Jenny Chapman, who accused him of being unable to give a “straight answer” when challenged about how much the UK will continue paying to the EU after it leaves.

He ducked the question, before claiming theat Labour is seeking to put the UK’s strategy at a “disadvantaged position” compared to the EU.

“I am afraid that, from time to time, [Labour] do things that are seriously not in the country’s interests,” he said.

“The opposition are trying to put us in a disadvantaged position with the European Union, and that is not in the national interest.”