Britain warns of ‘no deal’ risks

British companies trading with the European Union will face a tangle of red tape and possible delays at the border if the government fails to negotiate an exit deal before Britain leaves the bloc, official papers showed on Thursday.

Britain’s Brexit minister Dominic Raab said he remained confident the two sides would reach a deal, but set out in a series of notes what could change without one, including more paperwork for trade and more costly credit card payments when ordering EU products.

With little more than seven months until it leaves the EU on March 29, Britain has yet to reach an agreement with the bloc on its departure terms.

Prime Minister Theresa May’s plan for a “businessfriendly” deal failed to impress negotiators in Brussels and has been heavily criticised at home.

“We have a duty to plan for every eventuality,” Raab said.

“We need to have a sensible, responsible and realistic conversation about what a no-deal situation means in practice.”

The guidelines make it clear that companies trading with Europe would face new customs and excise rules, with paperwork covering customs and safety declarations, in the event of no deal.

If Britain left the EU in March 2019 without a deal, “the free circulation of goods between the UK and EU would cease”, the guidance said.

The government is working with industry to stockpile medicines for six weeks above normal supplies. This is one of the most valuable areas.

The paper on banking said businesses in Europe could be cut off from investment banks in London if there is a no-deal Brexit, and more than a million Britons living abroad may not be able to access their UK bank accounts.–