United Kingdom to pay 'substantially' less to European Union in event of no deal

Geneva Stokes
September 15, 2018

The automotive, airline, aerospace and chemicals sectors would be most severely affected, Moody's said, as they account for the largest trade flows in goods with the EU.

Traders say many investors are reluctant to take out big directional bets on sterling because of the uncertainty about where the Brexit negotiations are headed.

With six months to go until the UK formally leaves the EU, the prospects of a "no deal" have been rated at 50/50 by some UK and European ministers, and both the EU and UK have ramped up their contingency planning for such an outcome.

Sterling bounced back from early lows in volatile trading Wednesday after Brexit-supporting lawmakers in British Prime Minister Theresa May's party publicly pledged support for her to stay in power.

The warning was contained in a tranche of 28 technical papers released by Government departments on Thursday advising businesses and consumers on potential impacts of a no-deal Brexit.

And as many have also predicted the government is warning that mobile phone roaming charges for Brits who travel to the European Union could soar from March 2019 if there's a no-deal Brexit.

Raab says he remains confident a deal will be reached.

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The Brexit Secretary also accused people who warned about shortages of food and medicines after a no-deal withdrawal of "scaremongering", saying it was "nonsense" to claim United Kingdom supermarkets would run out of food.

Scottish secretary David Mundell said it was "very important" for the United Kingdom to prepare for a no-deal scenario, even though "it's not the outcome we want".

But the government said it would legislate to ensure that the requirements on mobile operators to apply a financial limit on mobile data usage while overseas is retained in United Kingdom law.

However, British citizens would be saved from hefty mobile roaming charges, the United Kingdom government promised.

Raab told BBC radio he did not believe May's government would lose a vote in parliament on the deal.

Brexit Secretary Dominic Raab said the government was being honest with the public.

"The fact that we are now seriously having to contemplate the possibility of Scottish and other United Kingdom travellers - including hardworking families looking forward to a relaxing holiday and business travellers - being turned away at the border of European Union countries is appalling".

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