EXTENDING the post-Brexit transition period and remaining under European Union rules for longer could hinder Britain’s efforts to deal with the coronavirus crisis and harm the economic bounce-back, UK Government ministers have warned.

At present, the UK and EU are negotiating a fresh trade agreement via video-conferencing due to restrictions on movement imposed on both sides of the Channel to stem the spread of Covid-19.

Despite officials in London and Brussels admitting the two rounds of formal talks that have taken place so far have seen little progress, Downing Street has consistently refused to extend the deadline beyond December 31.

Earlier today, Ian Blackford, the SNP’s leader at Westminster, urged opposition parties to support his call for a maximum two-year extension to the Brexit transition period to help protect the economy while the country dealt with the coronavirus pandemic. He denounced the UK Government for “recklessly gambling” with the country’s future.

In a letter to opposition leaders, the Highland MP said: “The ongoing emergency caused by the Covid-19 virus is, and must remain, the sole focus of our collective efforts, and it is right that all other political agendas are paused as we deal with the priority of saving lives and protecting people’s incomes."

But Michael Gove, the Cabinet Office Minister, told a Lords EU Committee that increasing the time available for the UK-EU talks could hurt Britain’s post-coronavirus recovery while also stinging the country in the pocket.

He claimed that, for each additional year the UK had to follow EU rules, the cost "would be something between £20 billion gross and £10bn net".

The Scot also warned there was no guarantee that the EU would not hinder Government attempts to revive the country's economy after the current lockdown measures were lifted.

"In these specific crisis arrangements because of Covid-19, we have seen the EU has shown a degree of flexibility on things like free movement and on state aid," Mr Gove told peers.

"But we cannot know, particularly when it comes to state aid, that it would necessarily be the case that we would have the freedom of manoeuvre that we might require.

"And certainly on other areas, perhaps in some of the data-sharing that might be required across Government departments in order to deal effectively with Covid-19, we can't be certain the EU wouldn't introduce or uphold rules that would be inconsistent with the freedom of manoeuvre that we might need," he added.

Later at the daily Downing St press conference, fellow Brexiteer Dominic Raab also pushed back on the idea of extending the transition period.

The Foreign Secretary argued that agreeing a trade agreement before the 2021 deadline would help the UK and its European neighbours to "bounce back" once the pandemic was over.

Asked why the Government was sticking to the end-of-year deadline, he replied: "Prolonging the uncertainty of the Brexit negotiation is unnecessary and would actually make that uncertainty worse."

During his 90-minute appearance in front of the Lords committee, Mr Gove also confirmed the UK would exchange texts with Brussels on the Government's negotiation position on fishing rights in the "next few weeks".

An agreement on fishing and financial services is due to be made next month as part of the first stage of ratifying a cross-Channel agreement.

Asked to respond to the claim by Michel Barnier, the EU's chief negotiator, that the UK had failed to "seriously" engage with its key issues, which include upholding a level-playing field, fishing waters access and governance, Mr Gove said the Government had already demonstrated it was willing to compromise by requesting a Canada-style free trade agreement.

"It is the case that we seek a zero-tariff, zero-quota arrangement," declared the Chancellor of the Duchy of Lancaster.

"But if it is the case that we end up like CETA (the EU's Comprehensive Economic and Trade Agreement with Canada) with tariffs on a small number of goods, we will regret that, we will think it is a missed opportunity, but if that is the price we have to pay, then there you go."