A no-deal Brexit would hit business and tourism, warn local business leaders

The warning comes as Theresa May’s cabinet has agreed to ramp up preparations for a no-deal Brexit, with today marking 100 days before the UK is set to leave the European Union.

It is understood ministers were presented with three options: continue with the current policy of enacting no-deal plans when it became necessary; full implementation of no-deal plans; or scale back no-deal preparations.

After discussions by ministers, it was agreed to go ahead with full implementation of no-deal plans. However, Downing Street stressed it’s the Government’s “top priority” to deliver Brexit under the terms of the Prime Minister’s deal.

Following the announcement, Rob Johnston, chief executive of Cumbria Chamber of Commerce, warned of the potential impact of no-deal on the local economy.

He said: “A no-deal Brexit would be very disruptive and create extra costs for businesses. It’s certainly not a desirable outcome.

“There would be no agreement on the rights of EU workers, customs checks would probably mean delays for goods, and UK licences and professional qualifications would no longer be recognised by the EU.

“Our exports would be subject to World Trade Organisation tariffs – up to 40 per cent on meat and dairy products, for example, but much less on manufactured goods.

“The Government would also have to negotiate bilateral agreements with individual EU countries to allow planes to fly into EU air space, and UK visitors would need an International Driving Permit to drive in the EU.”

A no-deal Brexit arrangement could also impact on tourism in the county, according to Gill Haigh, managing director of Cumbria Tourism.

She explained: “Brexit remains a huge concern and cause for uncertainty for many of our member businesses and our recent business performance survey revealed that the main issues are: the potential for increased operating costs, border controls for visitors, and in particular for many the recruitment and supply of EU workers.

“The survey results really illustrate the significance of staffing and recruitment challenges. This is not completely unexpected, but shows the visitor economy needs continued support to continue to grow in value.

“An additional concern we have is the image of Britain abroad, which could potentially weaken our strengthening overseas markets from Europe.”

Mrs Haigh added: “The Government’s Migration Advisory Committee has recommended new restrictions for low-skilled migrant workers when the UK leaves the EU next spring. Our research clearly demonstrates that due to the seasonal spikes of visitors, many hospitality businesses require a unique mix of labour - including both overseas workers and local employees – to fill the labour gaps throughout the year.”