UK business chiefs unite to demand urgent Brexit transition deal

Five major lobby groups write letter to David Davis in latest sign of employers' growing alarm about state of talks with EU

UK business leaders have united to urge David Davis to quickly establish a Brexit transition deal that mirrors existing arrangements or risk losing British jobs and investment.

In a letter to the Brexit secretary seen by the Guardian, five of the UK's biggest business lobby groups said time was running out for the government to strike a transition deal before firms start to rein in spending plans as they finalise budgets for 2018 and prepare to implement contingency plans for Britain's departure from the EU.

The EU27's negotiating guidelines for the two-year Brexit talks stipulate that they must take place in two phases: separation and "orderly withdrawal", followed by future relationship. Only when the EU27 decide "sufficient progress" has been made on phase one can phase two begin.

Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I'll be spending a lot more time there. #Brexit