Britain would end up in recession, the pound would collapse and store prices would burn up in the event of a no-deal Brexit, credit agency Moody & # 39; s warned.
In a stark prediction of what is at stake when the government jumps hard to prevent a chaotic EU exit, Moody & # 39; s said the chance of a & # 39; no-deal & # 39; Brexit & # 39; equipment has increased & # 39 ;.
The warning is because the government is publishing its next series of technical articles on what might happen if Britain leaves the EU without an exit agreement.
Britain would end up in a recession, the pound would collapse and store prices would burn up in the event of a no-deal Brexit, rating agency Moody & # 39; s warned as Theresa May the preparations for crashing out of the EU
Moody & # 39; s said today: "The immediate impact of a Brexit without a deal would probably be seen first in a sharp drop in the value of the British pound, as was clear after the 2016 British referendum on the issue. do not stay in the EU.
The fall in the exchange rate would lead to temporarily higher inflation and thus further pressure on real wages over the next two to three years, which in turn would depress consumer spending and depress growth. & # 39; 39;
The report added that unemployment would rise, that the Treasury would be reversed by lower tax revenues and that the UK could very quickly fall into a recession & # 39 ;.
The automotive, aerospace, aerospace and chemical industries would be the hardest hit, Moody's said, because they represent the largest trade flows in goods with the EU.
The impact on retail trade would be "substantial" as higher rates from the World Trade Organization are taking their toll.
We still think that the UK and the EU will eventually reach an agreement to preserve many, but not all, of their current trade arrangements, particularly in trade in goods, & # 39; said Colin Ellis, Moody's chief credit officer and co-author of the report.
We believe, however, that the prospect of the UK leaving the EU has increased considerably without any agreement. & # 39;
The automotive, aerospace, aerospace and chemicals sectors would be the hardest hit, Moody & # 39; s said, because they represent the largest trade flows in goods with the EU (dossier)
The Prime Minister has stepped up efforts to support Britain for no Brexit today with warnings that millions of people need new driving licenses and passports to travel to the EU.
A new set of documents on the consequences of the failure of the EU says that motorists need a new international license of £ 5.50 to use their cars on the continent.
They also warn that if negotiations with Brussels fail, ex-pats could be forced to resume driving tests after March next year, because their UK will no longer be valid.
Britons who need less than six months to use their passports should also renew before they travel to the EU – while the traditional British blue passports will not be issued until 2019.
The government removed the fear that holidaymakers would be hit by roaming charges for the use of mobile phones in the EU.
Although the rules that support the standardized costs will disappear in March, the largest telecom companies have agreed not to charge extra costs.