‘ Dangerous territory’ as UK faces leaving EU with no deal

BUSINESS LEADERS warned last night of the impact of leaving the EU without a trade deal on sectors ranging from automotive to food and drink, with one warning that the UK was entering “dangerous territory”.

It follows news that Boris Johnson has called a halt to talks with Brussels on a post- Brexit free trade agreement, warning that

Britain had to now prepare for a final no- deal break with the European Union.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said leaving the EU without a deal would have a devastating impact on the motor industry, hitting the economy and jobs in every region of the country.

He said: “Businesses have been battling coronavirus at the same time as investing heavily in decarbonisation, all the while preparing as best they can for a seismic change in trading conditions come the year end.

“To avoid permanent damage, we urge both sides to keep talking, to remain calm but work with renewed vigour on a deal that supports automotive, a sector that is the UK’s biggest exporter of goods and one of the UK and Europe’s most valuable economic assets.”

Ian Wright, chief executive of the Food and Drink Federation, said: “The Prime Minister’s statement signals we are heading into very dangerous territory.

“In the event of a no- deal Brexit,

shoppers will, literally, pay a heavy price.”

Dame Carolyn Fairbairn, CBI director general, said: “After four years of negotiations and so many hurdles crossed, this is no time to give up. Neither side can afford to fall at the final fence.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “Not only have small firms been hit by the most severe recession on record over the past six months, they’re now 10 weeks out from the end of the transition period with no clear sense of what our future relationship with the EU will look like.

“They’re being told to both prepare and simultaneously manage a fresh set of Covid restrictions.”