Liberal Democrat leader Vince Cable has backed a CBI report into the economic effects of an extreme Brexit, but warns that a transitional deal alone will be of little help unless we have a clear idea of what our trading relations will become in the long term.

Vince Cable said:

“This report suggests that the government is running out of time, yet we learn that the meeting next week between the UK and the EU27 will simply be talks about talks.

“Inward and domestic investment is already down, but unless the government gives employers the assurances they need, people are going to start losing their jobs. Then the government will be left with lower tax revenue to spend on schools, hospitals and infrastructure such as housing and transport.

“But gaining a transitional deal won’t improve business confidence if there isn’t also clarity about where we will transition to. The economy will really start to suffer unless the government guarantees membership of the single market and customs union for the long-term, not merely for a transitional period which would simply kick the problem down the road.”