Companies could face significant extra red tape and costs as a result of the Government’s Brexit plans, a House of Lords committee has warned.
The Prime Minister's approach could result in the introduction of tariffs and non-tariff barriers, the House of Lords EU External Affairs Sub-Committee also urged ministers to give "serious consideration" to transitional arrangements, arguing that concluding a free trade agreement (FTA) with Brussels within the two-year timetable for withdrawal would be "extremely ambitious".
The report warned that without an FTA, tariffs would apply, which could be "particularly damaging" for the automotive industry and other sectors with highly integrated EU supply chains.
Commenting, Peter Kyle MP, supporter of Open Britain, said:
“This report confirms that if the Government continues along its hard Brexit path, British businesses face a bombshell of Brexit bureaucracy.
“Leaving the EU with a bad trading deal, or no deal at all, will massively increase costs on our companies, through both tariffs and regulatory barriers. This will mean a smaller economy, fewer jobs, and higher prices in the shops.
“It is vital that the Government ends its stampede towards a destructive hard Brexit and gets a deal that delivers the ‘exact same benefits’ as we have now, as David Davis has promised.”