The UK is prepared to retain freedom of movement for EU nationals for at least two years after the nation leaves the bloc in 2019, according to media reports on Friday.

Theresa May reiterates goal of a smooth orderly exit from the EU

Prime Minister Theresa May told business leaders at a meeting in Downing Street that the government would not allow British companies to fall off a Brexit “cliff edge” and said the government was hoping to secure a transition deal that could last between two and four years after 2019, according to reports in The Times and Financial Times.A government spokesman said, “The prime minister reiterated that the government’s overarching goal is for a smooth, orderly exit culminating in a comprehensive free trade deal with the EU, with a period of implementation in order to avoid any cliff edges.”Francis Martin, president of the British Chambers of Commerce who attended the Downing Street meeting, said afterwards that a transition period was one of businesses' priorities in the negotiations with the EU.“Our research shows clear support among the business community for the UK to reach a comprehensive agreement with the EU, and for a transition period which will prevent firms facing a cliff edge,” he said. “The prospect of multiple, costly, adjustments to trading conditions is a concern for many, so starting discussions on transition arrangements as soon as possible would go a long way to boost business confidence.”In an interview with the BBC, Richard Gnodde, chief executive of Goldman Sachs International, said there was a need for the government to agree a “significant” Brexit transition period as soon as possible.

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Big businesses hope to have a set transition period as soon as possible

Mr Gnodde said that Goldman Sachs, which employs 6,500 people in the UK, was drawing up contingency plans involving adding hundreds of staff to its banks in Frankfurt and Paris, either by relocating them from London or recruiting locally.While he said London would remain a “very, very significant financial centre” and that his company would retain a large presence in the UK regardless of the outcome of Brexit negotiations, the company had to put contingency plans in place in case UK banks and other financial institutions lost the right to trade freely throughout Europe.“The other way to describe the contingency plan is that we are buying insurance,” Mr Gnodde said. “I'm spending money every single day to make sure that, come March 2019, I'm open for business. If I knew today that we would have a significant transition period I could stop spending that money because I know I would always have time to transition my business.“If they tell me in February of 2019 there will be a transition period – well, I've already spent all that money, it's not much use to me. At that point, the transition period doesn't really help. So the sooner we know the answer to: 'Will there or will there not be a significant transition period?' – that's obviously helpful to us. The sooner the better.“We obviously have contingency plans which we've prepared. We got on to that right after the referendum, and those are detailed plans and we are moving down a path.“The one thing I have to ensure is that, come the end of March 2019, we are in a place to service our clients whatever the outcome of negotiation, so we do have those contingency plans.“We have offices in many European cities right now, we have offices in Paris and Frankfurt and Stockholm and Madrid and Milan, we have banks in Paris and Frankfurt. So we have a broad footprint. We will obviously work to bulk that up somewhat.“London is going to remain a very, very significant financial centre whatever the outcome of the discussions. We will remain a very significant presence in London. But if the rules require us to have more on the Continent, we will have more on the Continent.”

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Read David Sapsted's article on Establishing Right to Remain – which discusses the uncertainty over immigration which the UK faces following Brexit – in the Summer 2017 issue of Relocate Magazine.

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For related news and features, visit our Brexit section.

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