THE economics of post-Brexit Britain will “drive the move” towards a second Scottish independence referendum, a leading expert has claimed, as Theresa May raised the prospect of an interim arrangement with the EU to avoid a cliff-edge departure.

Professor Danny Blanchflower, a former member of the Bank of England’s Monetary Policy Committee, highlighted Scotland’s different approach to Brexit, saying: “Obviously, the issue is Scotland voted to remain. It has a declining population. It wants to be part of Europe and likes immigration and, presumably, would like a say in what is going on…The economics, in some way, will drive the move to a referendum.”

READ MORE: Beyond Brexit: Economics will 'drive move to second independence referendum' in Scotland

Prof Blanchflower also argued that the prospects for a second poll on Scotland’s future were greater because the Prime Minister had “zero plans and no exit strategy”.

The left-leaning economist, who is Professor of Economics at Dartmouth College in New Hampshire and is a part-time professor at the University of Stirling, added: “Their lack of planning is astonishing. The May Government has absolutely no idea about anything and shoots from the lip.”

At the CBI’s annual conference in London, the group’s President, Paul Dreschler, said captains of industry were not looking for a running commentary on the UK Government’s Brexit strategy but wanted “clarity and, above all, a plan”.

He said: “Businesses are inevitably considering the cliff-edge scenario; a sudden and overnight transformation in trading conditions. If this happens, firms could find themselves stranded in a regulatory no man’s land.”

But the Prime Minister sought to allay such fears and by doing so hinted at some transitional arrangements to avoid a sudden departure from the Brussels bloc in spring 2019.

She told the CBI: "I understand the point Paul has made. Others have made this point that people don't want a cliff-edge; they want to know with some certainty how things are going to go forward.

"That,” she explained, “will be part of the work that we do in terms of the negotiation that we are undertaking with the European Union."

Her remarks appeared to push up the pound as it rose above the 1.25 mark against the US dollar.

Downing Street declined to say whether Mrs May's comments about avoiding a "cliff-edge" meant she was indeed seeking an interim agreement to cover the transitional period between the UK's departure from the EU and the ratification of a new trade deal.

"She was reflecting the views we have expressed already about how we secure the best deal for the UK and how we seek to provide certainty where we can to businesses and people across the UK on the steps moving forward,” said the PM’s spokeswoman.

She added: "There are a whole range of issues that are being worked through as we prepare for the negotiations."

However, Labour hit out at what it called the Tory Government’s Brexit “shambles.”

READ MORE: Beyond Brexit: Economics will 'drive move to second independence referendum' in Scotland

Clive Lewis, the Shadow Business Secretary, claimed Mrs May had caused confusion with her remarks.

"Today we hear [the PM] may be going for a transition at the end of the two-year process after Article 50. Now we are hearing we don’t know whether No 10 will confirm that. It’s absolutely a shambles; it’s chaos," he said.

Michael Gove, the former Justice Secretary, who was a leading Brexit campaigner, has questioned experts on whether it would be possible for a "quickie divorce" while other Eurosceptics have suggested the divorce process could take less than the two-year timescale set out under the Article 50 legal framework.

But Mrs May stressed how exiting the EU would “take time” and acknowledged the process created uncertainty for business.

“There will certainly be challenges,” she said in her keynote speech. “A negotiation like the one on which we are about to embark cannot be done quickly or without give and take on both sides.

"But there are opportunities too. Opportunities to get out into the world and do new business with old allies and new partners.”

Carolyn Fairburn, the CBI Director General Carolyn, stressed how the way Britain left the EU and on what terms would be critical for jobs and investment.

"It's vital that the on-the-ground expertise of business is used to help get the best deal for the UK and we welcome the Prime Minister's commitment to providing clarity on her negotiation plans; where possible.

She added: “The Government rightly has on its radar that we should seek a smooth transition which gives firms time to adapt."

Later, No 10 made clear there was no question of Mrs May seeking to extend the withdrawal negotiations beyond the two-year limit set out in Article 50; any decision to extend the talks would require the unanimous agreement of the UK and all 27 remaining member states.

"We will not be seeking to extend the Article 50 process," insisted the PM’s spokeswoman.

Meantime, David Davis travelled to the continent to establish “positive” links with key players in the Brexit process.

The Brexit Secretary held talks in Brussels with Michel Barnier, the official leading the negotiations for the EU, and will on Tuesday travel to Strasbourg for meetings with Guy Verhofstadt, the European Parliament's Brexit negotiator, and a cross-party group of MEPs.

READ MORE: Beyond Brexit: Economics will 'drive move to second independence referendum' in Scotland

Officials said the Cabinet minister was signalling his "determination to approach negotiations in a spirit of goodwill".

Elsewhere, Facebook followed Google by announcing plans to create an extra 500 jobs in the UK when it opens a new headquarters in London next year.

Mrs May said the move showed how “businesses are saying…the UK is a great place to invest and is a great place to do business”.