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The UK must have "a clear game plan" for any transitional arrangement for Brexit early on in its negotiations with the EU, ministers have been told.

A House of Lords committee warned that if no interim deal was agreed then UK firms would face significant tariffs and other barriers to trade.
Speaking on Monday, Chancellor Philip Hammond suggested such a scenario may be "generally helpful" for the UK.

Member of the Select Committee for Exiting the EU Peter Lilley and former business minister Anna Soubry discuss the potential benefits and challenges of an interim deal.

(Image: Elizabeth Tower. Credit: Getty Images)