Cliff-edge Brexit looms as Dominic Raab reveals no-deal plans
Around 20 technical papers dealing with the impact of a âcliff-edgeâ Brexit on different economic sectors will be published today, in the first batch of guidance for UK companies and residents.
The Scottish Government warned a no-deal Brexit would be âdeeply damaging and disruptive for Scotlandâ and must be ruled out.
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Hide AdA survey commissioned by auditor KPMG suggests a majority believe a no-deal Brexit is the likeliest outcome, regardless of economic status or political opinion.
Of the 3,044 respondents, 54% said a no-deal Brexit was likely, with just 20% saying it was unlikely. The majority said they believed a no-deal Brexit would have an impact on their daily lives, with 70% saying prices would rise and 69% saying they would cut their spending.
âThe results reveal how people are anticipating substantial disruption in the short to medium-term,â James Stewart, the head of Brexit at KPMG UK said. âThe mood music of the Brexit talks is likely to have a direct effect on consumer confidence.â
Amid growing concern on both sides of the Channel at the shortening odds on a no-deal exit from the EU, Brexit Secretary Dominic Raab will use a speech today to offer reassurance, insisting that âa good deal is within our sightsâ.
However, Mr Raab will say âsensible, measured,and proportionateâ planning for a no-deal is âthe responsible thing for us to do on all sidesâ and will call for preparations to extend to opening bilateral talks with other EU countries on specific issues.
Reports on Wednesday revealed that the UK is considering a bilateral agreement with Ireland to try preserve the common energy market on the island, in order to avoid costly no-deal contingencies which could involve generators being set up on barges around the coast to keep the lights on in Northern Ireland.
âI remain confident a good deal is within our sights, and that remains our top, and overriding, priority,â Mr Raab is expected to say. âIf the EU responds with the same level of ambition and pragmatism, we will strike a strong deal that benefits both sides.
âBut, we must be ready to consider the alternative. We have a duty, as a responsible government, to plan for every eventuality.â
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Hide AdThe Brexit Secretary has said EU citizens living in the UK, whose status in the UK would be thrown into doubt in a no-deal Brexit, will not be âturfed outâ even if talks with Brussels failed.
The UK will take âunilateral action to maintain as much continuity as possible in the short term, in the event of no deal â irrespective of whether the EU reciprocates,â Mr Raab is expected to say.
âFor our part, if the negotiations fail, we will continue to behave as responsible European neighbours, partners and allies,â he will add.
Michael Russell, the Scottish Governmentâs Constitution Secretary, said Scotland was âat the mercyâ of the UK Government in terms of preparing for a no-deal Brexit.
âIt would be far better for Scotland and the UK if, instead of putting effort into an undesirable âno dealâ scenario, the UK Government focussed on securing the least worst outcome for all of us,â Mr Russell said.
Liberal Democrat MP Tom Brake said the growing risk of a no-deal Brexit underlined the case for a referendum on the terms of the UKâs exit from the EU.
âThe choice between a catastrophic Brexit no-deal and the rejected Chequers plan is no choice at all,â Mr Brake said.