NO-DEAL BREXIT REVEALED
ANALYSIS
further red tape, one document warns.
Another triggered fears Britain could be hit by bits of space debris because the UK would lose access to the EU’s Space Surveillance and Tracking service.
Mobile phone roaming charges could return for millions of Britons travelling to the Continent.
The Moody’s credit rating agency warned the pound would collapse and shop prices would rocket, leading to recession in the event of a no-deal Brexit.
In a grim reminder of what is at stake, Moody’s said the probability of a no-deal Brexit has “risen materially”.
They added: “The immediate impact of a no-deal Brexit would likely be seen first in a sharp fall in the value of the British pound, as was also evident after the 2016 UK-wide referendum on whether to remain in or leave the EU.
“The fall in the exchange rate would lead to temporarily higher inflation and, hence, a further squeeze on real wages over the following two to three years, which in turn would weigh on consumer spending and depress growth.”
The report added that unemployment would rise, the Treasury would be knocked by lower tax revenue and the UK could “fall into recession very quickly”.
SNP Constitutional Relations Secretary Michael Russell said talks should be extended if needed to avoid crashing out of the EU without a transition period.
He said: “Although the Scottish Government are doing everything in their power to protect Scotland, these technical notices make plain the crippling costs and needless red tape that a no-deal scenario will bring.
“The fact that we are now seriously having to contemplate the possibility of Scottish and other UK travellers – including hard-working families looking BY JASON BEATTIE THE latest papers setting out the consequences of a no-deal Brexit make for frightening reading.
The Government would like you to believe these are precautionary measures, no different to the safety advice on flights.
There is no reason to expect the plane will crash but you need to know the routine in the event of that unlikely scenario, runs their thinking.
It also helps Prime Minister Theresa May’s case for the perils of a no-deal to be ramped up. The problem is there are a diehard group of Brexiteer Tories who still believe that no deal, or a clean Brexit as they call it, is preferable to May’s Chequers proposals.
They would jump from a burning plane without a parachute if they thought they would get their prize of leaving the EU.
If the Brexit talks collapse or May is forced to make further compromises, then it is possible we could still leave without an agreement. Given Brussels wants to avoid such an outcome and there is no majority in Parliament for a no-deal, you hope it will not materialise.
But if it were to happen, we will findout whether it was project fear or an apocalyptic
reality. forward to a relaxing holiday and business travellers – being turned away at the border of EU countries is appalling.”
He repeated calls for the UK to remain part of the single market and customs union, adding: “A no-deal Brexit should be unthinkable, which is why it should be ruled out, if necessary by extending Article 50.”
Keir Starmer, Labour’s Shadow Brexit Secretary, said: “A no-deal Brexit would be catastrophic for jobs, the economy and for the border in Northern Ireland.
“We have less than 200 days until we leave the EU and the Government still have no credible plan for Brexit.
“The Cabinet should be planning to negotiate a good deal for Britain, not planning for failure or blaming businesses for the Government’s chaos.
“The only reason the Government are talking about no deal is because the Tory civil war on Europe prevents the Prime Minister from negotiating a good deal.”
Lib Dem MP Jo Swinson, a leading supporter of the People’s Vote campaign, said: “The Brexit mess gets worse every day. It is putting prices up in the shops, costing jobs and deterring investment.
“The no deal notes show just how bad things could get. Holidays could be ruined, the Northern Ireland peace process further destabilised, we could be blocked from watching popular sports on TV.
“The no deal notes make it clear the Common Travel Area could be mired in immigration checks and we still have no answer on how a hard border can be avoided.
“Nobody voted for any of this. In fact, it wasn’t even discussed at the time of the referendum. There is a way out of this mess and that is to have a People’s Vote on the final Brexit deal.” SPACE We’ll lose access to the EU Space Surveillance and Tracking service, which helps prevent satellites hitting each other. It also warns about space debris falling to Earth. FUNDING The European Regional Development Fund Programme gives money to poorer parts of the EU. In a no-deal scenario, the UK can’t access cash after March 2019.