Brexit worst-case scenarios revealed as deadline looms...
BRITISH car firms would be unable to sell their vehicles in the EU under a doomsday no-deal Brexit.
Manufacturers and suppliers face being barred from exporting to the continent until their goods win safety and environmental approval from Brussels, according to Whitehall papers released yesterday.
It came as Bank of England governor Mark Carney said house prices would crash by 35% over three years due to spiralling mortgage rates.
And credit rating agency Moody’s warned of recession, a plunging pound and inflation if there is no deal.
Shadow Brexit Secretary Sir Keir Starmer said: “A no-deal Brexit would be catastrophic for jobs, the economy and Northern Ireland border. “With the clock ticking, ministers should drop the irresponsible rhetoric and put jobs and the economy first.” Ministers are publishing papers on possible consequences of crashing out on March 29 without a deal. Some 28 were released after a Cabinet meeting on contingency plans. One document warns ferries and cargo ships docking in the EU face disruption from red tape. Another even raised fears we could be hit by bits of space debris due to losing access to the EU Space Surveillance and Tracking service. It also emerged mobile phone firms could hammer customers with EU roaming charges – despite them saying otherwise.
Which? chief Peter Vicary-Smith said: “News we could face the return of sky-high charges to use our phones abroad will come as a real blow.”
A separate paper says millions travelling to the continent would need at least six months left on their passports.
And any Britons hoping to drive in the EU may need a £5.50 permit. Medicines could go up in price too. French foreign minister Nathalie Loiseau also claimed Eurostar trains will stop and planes would be grounded. No10 denied this, however.
Tory Brexit Secretary Dominic Rabb said of the documents: “In the event of a no-deal scenario, which is not what we want, we would face short-term risks and short-term disruption.
“But what we need to have in place is a set of plans and proposals, and the readiness… to manage those risks.”
PM Theresa May remains confident of sealing a pact and is pushing the EU to back her Chequers withdrawal plan.
But no-deal remains an “unlikely but possible scenario”, her spokesman said.
The warning on car exports comes days after the boss of Jaguar Land Rover said a no-deal Brexit could lead to the loss of tens of thousands of jobs and a £1.2billion hit to profits.
Labour MP Gareth Thomas, of the Best for Britain campaign, said: “This no-deal scenario cannot be seriously considered as an option.”
Theresa May could be ousted from No10 post-Brexit in the same way Winston Churchill was ejected after the Second World War, Tory MP Tom Tugendhat has warned, as he called for a “generational shift” in the party.