The idea of a slow departure through a transitional deal had been mooted by Bank of England Governor Mark Carney, who had previously played a leading role in the Project fear campaign to try to scare voters into backing Remain.
The idea had been seized on by Remoaner MPs who see it as a way of delaying Brexit by years and potentially reversing the result.
But according to reports, a leaked memo has suggested Brexit Secretary David Davis told a meeting of City figures that he is “not really interested” in a transitional deal, he told a private meeting with the City of London Corporation, the Financial Times reported on Friday.
The memo of a meeting on November 15 made by an unidentified City of London Corporation representative, said Mr Davis would consider a transitional deal only in order to “be kind” to the EU.
A spokeswoman for Prime Minister Theresa May said the memo was merely an interpretation of the meeting, and that Mr Davis “has been engaging with a wide range of businesses as part of the preparations for negotiations”.
But Brexit campaign group Leave Means Leave, which wants a rapid EU exit, welcomed the indication of the Government’s planning.
Tory MEP David Campbell Bannerman, a senior member of Leave Means Leave, said: “This is very welcome news.
“A transitional arrangement is totally unnecessary and will create serious uncertainty for the UK economy.
“It is nothing but a mechanism for Remain campaigners to try to stall and eventually thwart Brexit.”
December 9th, 2016: Express