The UK government has published a report where the impact of a no-deal Brexit on business and trade is assessed, the BBC reports. The report comes after PM Theresa May said MPs would have to vote to either delay Brexit or rule out no-deal in case her agreement is rejected once again.
The assessment found “little evidence that businesses are preparing in earnest” for no-deal Brexit and that customs checks alone could cost businesses GBP 13 billion a year.
In the document, the government admitted it was behind on contingency planning for a third of “critical projects” related to business and trade.
Significant findings of the no-deal impact assessment include:
- The economy could be 6-9 percent smaller over the next 15 years that it might have been otherwise – the Bank of England made similar forecasts;
- The flow of goods through Dover would be “very significantly reduced for months”;
- Food prices are likely to increase and panic buying may create shortages;
- Of the 40 planned international trade agreements, only six have been signed.
Theresa May has said that the next vote on her Brexit deal would happen by March 12. If that fails, there will be a vote the following day to support no deal, and if that also fails, another vote would be given on extending article 50 and delaying Britain’s exit from the EU.