Britain’s so-called Brexit “divorce bill” will rise by £4-5bn if Theresa May seeks a longer transition period than Brussels wants, a Commons inquiry has been told.
A Government minister did not dispute the figure, which was put to him by the chairman of the European Scrutiny Committee.
“This is something which, like the Roald Dahl Tales of The Unexpected, has suddenly appeared,” said Bill Cash, the committee’s Conservative chairman.
The transition period was beginning to look “as long as a piece of string”, Mr Cash told Robin Walker, the Brexit minister, and Sir Tim Barrow, the UK’s ambassador to the EU.
In reply, Sir Tim acknowledged that the Government’s estimate of the financial settlement – between £35bn and £39bn – was based on the transition concluding at the end of 2020.
Guidelines issued by No 10 yesterday hinted that the transition could be longer, while repeating the aim for it to be “around two years” from Brexit Day, in March 2019 – therefore, extending into at least 2021.