Business warns jobs at risk if deal is not reached
TRADE WITH countries around the world will be hit by a no-deal Brexit and put jobs across the UK at risk, Ministers have been warned.
The Confederation of British Industry (CBI) sounded the alarm about the prospect of the UK losing the benefits of trade deals struck by the European Union with economies around the world.
CBI president John Allan warned “the consequences are serious”, including the possibility of car companies in the UK falling out of global supply chains.
He said the risk underlined the importance of politicians in Westminster and Brussels agreeing a deal and securing a transition period during which the trade arrangements would remain in place.
Mr Allan said: “Individual businesses in every corner of the UK that trade with markets outside Europe would have tariffs worth hundreds of millions of pounds slapped on them instantaneously.
“Car companies risk being dropped from complex global supply chains that support these deals, and services firms risk losing vital protections that allow them to operate abroad.
He added: “It is critical that compromise on both sides of the Channel is shown and that politicians work together quickly to come to a deal.”
The warning came as output in Britain’s service sector took a hit, reaching its lowest level for two and a half years with experts blaming Brexit for the slowdown.
According to data from leading financial firm IHS Markit and the Chartered Institute of Procurement & Supply, its index plummeted from 50.1 in January, down from 51.2 a month earlier, missing economists’ expectations of 51.
Chief business economist, Chris Williamson, said the dip was “linked to heightened Brexit anxiety”.
But he added that “global political and economic factors” were also dampening demand.