Prime Minister Theresa May’s Brexit deal was rejected by 230 votes – the largest defeat for a sitting Government in history, the BBC reported.
The deal, which sets out the terms of the country’s exit from the EU on 29 March, was voted on by MPs last night (15 January). They voted by 432 votes to 202 to reject it.
UKH chief executive Kate Nicholls said: “Tonight’s (15 January) vote in parliament brings into stark reality the prospect of a no-deal Brexit, which would likely be disastrous for the British economy and a hospitality sector that is well-equipped to make a vital economic contribution as we leave the EU.”
Firing line
She added: “There can be no deal, faced with such a stark outlook, for politicians to focus on working together to take any and all measures possible to ensure British consumers are not in the direct firing line of the consequences of food and drink supply chain chaos and the price rises that will inevitably ensue.
“If that means delaying implementation of Article 50 then ideological differences must be put aside for the sake of pragmatic economic benefit.”
Meanwhie, Brexit secretary Dominic Raab outlined “practical and proportionate” advice in case the UK leaves the EU without a deal on 29 March last year (August).
Titled UK Government's preparations for a 'no-deal' scenario, the document states: “While progress has been significant and we remain confident that a positive deal can be achieved, until both the UK Government and the European Union sign a withdrawal agreement – and it is ratified by the UK parliament and the European parliament – there remains a possibility that we may leave the EU without a deal in March 2019.”
Trade impact
Some of the changes in day-to-day finance brought about by a no-deal scenario highlighted in the published papers include changes to VAT rules if Britain leaves the EU without a deal and the likely increase in credit card payment costs.
Moreover, the impact on trade and business is expected to extend to changes in import tariffs and customs checks, the application of customs and excise rules to UK goods received by the EU and payment of VAT and import duties by UK companies for EU goods.
Britons in the EU could lose access to pensions and disruption is anticipated across the agricultural supply chain.
The papers highlight that Britain will create a financial regulator “general transitional tool” to ease the impact of a no-deal Brexit.