Thursday 09 March 2017 7:42 pm

Brexit secretary David Davis says most sectors won’t need transition periods, because the government is aiming to get the best possible deal

The Brexit secretary has insisted most sectors of the UK economy will not require transitional arrangements after the UK leaves the EU, as the proposed deal with Brussels should erase the need for them.

"Our overarching offer, as it were, of a comprehensive free trade arrangement will actually remove the need for transition in some areas," David Davis said as he fielded MPs' questions this morning. "Not in the highly regulated ones…but in many cases it will not be necessary at all."

However, he did not go as far as to rule such deals out entirely, saying: "Transitional arrangements – and this is not about some arrangement to extend the discussion or debate or the negotiation but transitional arrangements for practical implementation issues – may well turn out to be in the interests of both sides."

When questioned on financial services, he assured those gathered there was an "ongoing workstream" which involved regular discussions with regulators.

Davis added: "The governor of the Bank of England has commented on the need to maintain stability after Brexit, and that will be an important part of our negotiations."

Mark Carney said in January the consequences of a bungled Brexit deal without necessary transition periods "would be greater for Europe than the UK", although there would still be some fallout for the UK.

Davis has previously warned cabinet ministers they should brace themselves for the chance the UK might not reach an acceptable Brexit deal, and they should prepare for the "unlikely scenario" the country will need to adopt WTO rules.