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Carney: Woes from no-deal to hit hard.

Shoppers and motorists will face higher prices, and a "substantial number" of firms could find they can no longer compete if there is a no-deal Brexit.

Mark Carney, Governor of the Bank of England stepped up his warnings despite criticism from Brexiteers, insisting that the challenges posed by a no-deal withdrawal on October 31 should not be played down.

In a response to the optimistic predictions made since Boris Johnson became Prime Minister, Mr Carney said: "It may take a while to get to the sunlit uplands."

His comments came after a leaked Government document suggested a no-deal Brexit could trigger "consumer panic", food shortages and an increased security threat within a fortnight.

The slide, prepared for ministers and obtained by Sky News, says the pound could fall in the first month, while Northern Ireland may face law and order challenges.

Marked "official sensitive" and titled "What this could look like on the ground", it also warns that UK nationals in the European Union could lose access to services and residence rights within the first 24 hours.

The prediction of a further collapse in the value of sterling was echoed by Mr Carney, who said it would lead to increased prices for fuel and food.

The Bank chief said a shift to World Trade Organisation tariffs would also render many firms - "potentially it's a substantial number" - uneconomic, possibly resulting in closures and job losses.

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Publication:Shropshire Star (Shropshire, England)
Date:Aug 3, 2019
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