Leaving the European Union with no deal would have “widespread, damaging and pervasive” consequences for Britain, a new report by senior academic experts finds.
The report ‘Cost of No Deal’, by the ‘UK in a Changing Europe’ group of academics, based at King’s College London, cites Treasury figures suggesting a ‘no-deal’ Brexit could lead to a 6% hit to UK GDP.
They also warn that planes could be unable, in the short term at least, to fly between the UK and Europe; that UK-EU trade could fall by 40% over 10 years; that the value of Sterling would fall further by as much as 15%; that EU citizens living in the UK and UK citizens living in the EU could be left in legal limbo; and that there would be a hard border between Northern Ireland and the Republic of Ireland.
Commenting, Chuka Umunna MP, leading supporter of Open Britain, said:
“This eye-opening report should be required reading for the Brexit Secretary, the Prime Minister, and everyone who believes that a Brexit with no deal would be in any way acceptable. As these experts set out, it would in fact be nothing short of catastrophic.
“Leaving the European Union without a deal would be disastrous for our economy, the nuclear industry, airlines, Northern Ireland, and much more. The Government may think they are strengthening their negotiating hand; they are in fact setting our country up for legal limbo and administrative chaos.
“Ministers need to accept reality and drop their absurd stance that no deal is better than a bad deal. Instead, to prevent damage to jobs and our economy, they should focus on keeping Britain in the Single Market and the Customs Union.”