>> Step one, the UK needs a plan for a transitional trade deal with the European Union. That's the message from the House of Lords on Tuesday. A committee urging the government to set up plans for an interim deal before beginning formal divorce talks next year. The House of Lords EU External Affairs Committee isn't convinced a bespoke EU trade deal can be struck within Article 50's two-year deadline.
It says a temporary agreement is vital to protect UK trade and jobs, and suggest staying in the EU Customs Union. The committee also says a stopgap deal could take the pressure off Brexit negotiations. Speaking on Monday, Chancellor Philip Hammond agreed.>> There is, I think, an emerging view among businesses, among regulators, and among thoughtful politicians, that having a longer period to manage the adjustment between where we are now as full members of the European Union and where we get to in the future as a result of the negotiations that we will be conducting, would be generally helpful.
>> Banks and businesses have repeatedly argued the government should agree to a transition period to avoid a damaging cliff edge or abrupt exit from the block.