A no-deal Brexit would cause severe disruption to the economy, pose a fundamental risk to the competitiveness of key sectors and put many jobs and livelihoods at risk, a House of Commons select committee has confirmed.
Taking evidence from representatives of the UK’s most important industries and services, the Exiting the European Union Committee concluded that there would be widespread disruption if the UK exits the European Union without a deal.
They said attempting a “managed no deal” cannot constitute the policy of any responsible Government, warning that UK businesses would be treated as third-country service providers by the EU.
Undermining the competitiveness of the UK
The chemical, retail, food and drink and manufacturing sectors would be hardest hit by a no deal, with the North East and West Midlands seeing the most disruption.
The UK automotive sector would also be subject to the EU’s Common External Tariff on its exports to the EU27, its largest market, adding costs estimated at around £2,700 for UK cars.
That would “undermine the competitiveness of UK exported cars compared to cars manufactured and traded within the EU and cars manufactured in countries, including South Korea and Japan, with free trade agreements with the EU.”
“Disastrous” for UK farming
As for farming “UK producers would face high tariffs exporting to the EU, currently the market for over two-thirds of UK agri-food exports…..Sheep meat would face a tariff approaching 50 per cent, bringing the viability of that sector into question. “
The report continues: “We have no reason to doubt the concern that no deal would lead to some interruptions to food supplies in respect of certain products or to doubt the analysis of the NFU that no deal would be “disastrous” for UK farming.”
Addressing the positives of no-deal, it states: “Some have argued that a no deal exit would bring the EU “back to the table” and that the UK would secure a better deal as a result. This is, at best, a gamble.
“At worst, it could lead to severe disruption of the economy, pose a fundamental risk to the competitiveness of key sectors of the UK economy, and put many jobs and livelihoods at risk.”
Read the report in full here.
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
