Companies in Britain and the European Union face an extra £58 billion in annual costs if there is a no-deal Brexit, with Britain’s vast financial sector set to be the worst-hit industry, according to a report on Monday.
Firms across the EU’s 27 countries other than Britain will have to pay £31bn a year in tariff and non-tariff barriers if Britain leaves the bloc without a deal, the report by Oliver Wyman management consultants and law firm Clifford Chance said.
In return, British exporters to the EU will have to pay £27bn a year.
“These increased costs and uncertainty threaten to reduce profitability and pose existential threats to some businesses,” the report said.
Britain is due to leave the EU next year after voting in favour of ending more than four decades of political, economic and legal ties with the world’s largest trading bloc.
In the absence of an agreement, trade between Britain and the other 27 EU members would default to World Trade Organisation rules and tariffs, a sharp contrast to the access the UK has enjoyed as a member of the EU’s single market.
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Read More:
Tusk talks tough on Brexit despite British pleas for good deal
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Although Britain wants a deal, the government says it is preparing for any outcome, including the chance that Britain could crash out of the bloc without a deal. It has set aside £3bn pounds to prepare for all eventualities.
If Britain stays in a form of a customs union it would reduce the costs for both sides by about half, the report said.
However, Prime Minister Theresa May has ruled out keeping Britain in an EU customs union because it would prevent the country from striking its own trade deals with fast-growing economies such as China and India.
Monday’s report showed 70 per cent of the extra costs in Britain from a no-deal Brexit would be shared by five industries: financial services, cars, agriculture and food and drink, consumer goods and chemicals and plastics.
Financial services firms in Britain would suffer the biggest hit because, unlike some automotive and aerospace firms that can switch to domestic suppliers of components, they will have to set up new operations in the EU to continue serving clients.
Goldman Sachs and UBS said last week they were starting to transfer some bankers to Frankfurt in preparation for Britain’s exit from the EU.
The Bank of England has warned that about 10,000 finance jobs may leave Britain by the end of next year because of Brexit.
However, top US investment banks are currently planning to hire far more people in London than anywhere else in Europe.
In the EU, the hardest hit sector would be the automotive sector, agriculture and food and drinks, chemicals and plastics, consumer goods and industrials, the report said.
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THE BIG MATCH
Arsenal v Manchester City,
Sunday, Emirates Stadium, 6.30pm
UAE currency: the story behind the money in your pockets
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Spare
Profile
Company name: Spare
Started: March 2018
Co-founders: Dalal Alrayes and Saurabh Shah
Based: UAE
Sector: FinTech
Investment: Own savings. Going for first round of fund-raising in March 2019
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
23-man shortlist for next six Hall of Fame inductees
Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.
SOUTH%20KOREA%20SQUAD
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
