NEGOTIATIONS over Britain’s withdrawal from the European Union have begun with business calling for an interim deal which would put the economy first.

The government’s Brexit secretary, David Davis, arrived in Brussels yesterday to begin talks.

A letter from the CBI and British Chambers of Commerce called for transitional arrangements so the UK could “maintain the economic benefits” of the single market and customs union until a final deal is agreed.

The letter – also signed by the manufacturers’ group EEF, the Federation of Small Businesses and the Institute of Directors – also presses for an early deal guaranteeing the rights of EU citizens living and working in Britain.

Ian Girling, chief executive of Dorset Chamber of Commerce and Industry, said business was already suffering the uncertainty created by a hung parliament.

“Business has remained focused and done a great job of moving forward but this result caused real uncertainty. There needs to be transparency and clear information coming out to business,” he said.“Our position has been an impartial one during Brexit. Many business want to remain and many do see opportunities outside the EU. The decision has been made and we need a business-friendly society.”

He said concerns about the supply of labour to UK business needed to be addressed early. “For me, it’s absolutely essential. Lots of sectors rely on overseas workers – like tourism and the National Health Service. Business needs to see some free movement of labour,” he added.

Prof Jens Holscher, who heads the department of accounting, finance and economics at Bournemouth University, said Brexit was likely to have a “severe” effect on education.

The ending of the “passporting” arrangements which allow free trade in financial services could also hit Dorset, he said.

“If JP Morgan want to transfer 4,000 posts, some will be from here,” he said.

But he said there could be a positive effect on Dorset’s tourism sector from the collapse in the pound. “The biggest risk I think would be restrictions on trade and also migration between countries, but he government may be seeking a softer Brexit now,” he said.

“There’s an element of uncertainty after the recent election which we haven’t had before.”

Simon Boyd, managing director of REIDsteel in Christchurch has written to all 650 MPs urging a “clean break” from the EU.

He wrote: “We voted out and that means out please. Out of the EU but not out of Europe. Out of the damaging jurisdiction of the European Court of Justice. Out of the single market that only works for the few. Out of the customs union that ties us to trading to a protectionist block.”

He added: “There is no such thing as a ‘hard Brexit’. It is a deceptive phrase used to describe negatively what we voted for.

“We want to break these key ties cleanly and be free to trade with our European friends and the rest of the world.”Mr Boyd chaired South West Business for Britain during last year’s referendum campaign.