IT’S THE CLIFF EDGE
Retailers warn of big No Deal price rises Six in ten medicines could face port delays Car and clothing prices will also be hit
THE UK was hurtling towards the cliff edge of a No Deal Brexit today after Boris Johnson took last-ditch talks to the wire.
With just hours to go until today’s deadline for any pact, a senior Government source said make or break negotiations would continue through last night.
But he described the head-tohead between EU and UK negotiators Michel Barnier and Lord Frost as “very difficult”. Prime Minister Boris Johnson had told the EU: “The offer on the table remains unacceptable.”
And the Government source added: “The PM’s position remains the same – any deal must be fair and respect the principles of sovereignty and control.
“He will leave no stone unturned in this process. But he is absolutely clear any agreement must respect the fundamental position that the UK will be a sovereign nation in three weeks.”
It could be yet another case of Boris brinkmanship – the ultimate test of whether the EU blinks first.
And the stakes couldn’t be higher as, from New Year’s Day, 200,000 jobs will be at risk, shops and supermarkets will be hit with £3billion in tariffs and 7,000 lorries a day could be trapped in Dover.
Forecasters say WAGES could fall, family FOOD bills will rise a typical £624 a year, CLOTHES prices will soar by 12 per cent and tariffs on CARS will add £1,300 to the average imported motor.
One report even predicts medicines might be held up and unrest could break out on our streets.
Later today Mr Johnson will speak to EU Commission president Ursula von der Leyen as the deadline for a decision expires.
It is in both Mr Johnson’s and Ms Von der Leyen’s interests to show they have driven a hard bargain.
But as thousands of lorries queued up at Dover to take goods
Protecting UK and EU consumers from billions in tarrifs must be top priority ANDREW OPIE BRITISH RETAIL CONSORTIUM SPOKESMAN
out of the country, families were warned just how hard a No Deal will hit them. The British Retail Consortium said without a deal we will have to pay £3.1billion in extra import taxes when the transition period ends on January 1 – lifting food and drink prices 20 per cent.
According to Which? magazine, tariffs will add 22p to a 300g pack of Danish bacon, 56p to 400g of cheese, 40p to 250g of butter, 12p to 1kg of white rice, 26p to 300g of chicken and 8p on three yoghurts.
The BRC’s Andrew Opie urged the PM to reach an agreement, insisting: “Protecting UK and EU consumers from billions in tariffs must be the top priority.”
A shock Cabinet Office report estimates six in 10 medicines could be held up for three months. Vets are also worried as 81 per cent of animal drugs are made in the EU. The same report says one in 20 councils could collapse in the economic meltdown – and police should be prepared for riots.
The ports will be in uproar. With 10,000 trucks a day coming through Dover, 7,000 may be held up for two days or more by extra red tape.
A Whitehall worst case scenario
warns of gridlock from the coast to London. Yet despite promises of 5,000 more staff to cope with Brexit, Shadow Chancellor Anneliese Dodds yesterday revealed there are only 16 more customs officials than five years ago.
She added: “British business has been let down by the Government’s irresponsible approach.”
As well as No Deal chaos, experts predict an influx of migrants crossing the Channel. A Whitehall source said: “The boat people will grab the chance as everyone’s attention is elsewhere.”
UK trade with the EU is worth £ 660billion a year. The Bank of England estimates trade losses will mean an extra 200,000 people unemployed next year on top of 2.6million out of work because of Covid.
And Germany will not fare much better as it will face 176,000 job losses.
The TUC’s Nicola Smith said: “No deal will also make it harder to create jobs and to find decent, well-paid work.”
It is estimated wages could fall as much as 10 per cent. The GDP – already down by 11.2 per cent because of Covid – would take another hit.
And even if there is a deal, the Office of Budget Responsibility says output will fall by four per cent. More than 330 British firms have already done a
Brexodus and moved to Europe. No Deal could plunge the Pound close to parity with the dollar. And analysts say seven per cent could be wiped off the value of British firms and 20 per cent off banks as trading opens tomorrow.
Peter Garnry, of Saxo Bank, said: “A hard Brexit will shock the market.”
But a No Deal will not mean all is lost – at least at sea. Under present quotas, Britain keeps seven per cent
of cod caught in UK waters while France snaffles 10 times that. No Deal gives us 43 per cent – and four Navy gunboats will be deployed next month in preparation for a new Cod War. But France just shrugged it off. Asked about patrol vessels yesterday, an Elysee official turned a British wartime slogan back on us and simply said: “Keep calm and carry on.”