British lawyers and accountants could be barred from working in Europe if the Government leaves the Brexit negotiations without a deal, House of Lords peers have warned.

A cross-party report from the European Union Committee said that non-financial services, which account for 39 per cent of UK exports, will be “badly damaged” if Britain fails to strike a Free Trade Agreement (FTA).

Professional business services, such as legal and accounting firms, would face “increased, and in some cases absolute, barriers to trading with the EU” and will likely “relocate to the EU”, it said.

Non-financial services, including aviation, digital services, retail and broadcasting, will also be hit, it said.

“This trade is critical to the UK’s economy as it creates employment and supports goods exports – we can’t afford to lose that,” said Lord Whitty, the chairman of the EU Internal Market Sub-Committee.

“Walking away from negotiations without a deal would badly damage UK plc, particularly in sectors such as aviation and broadcasting.”

The report said a deal is vital because many of these non-financial industries have no World Trade Organisation rules to fall back on.

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“Faced with a 'no deal' scenario, businesses could be forced either to re-structure or relocate in order to continue to operate in the way that they do today,” it added.

It also called on the Government to negotiate an FTA to cover all services by the time the two-year Brexit process likely ends in 2019.

“Under a ‘no deal’ scenario, regulated PBS firms, such as legal and accounting firms, would face increased, and in some cases absolute, barriers to trading with the EU," it said.

How Brexit affected Britain's favourite foods from Weetabix to Marmite Show all 8 1 /8 How Brexit affected Britain's favourite foods from Weetabix to Marmite How Brexit affected Britain's favourite foods from Weetabix to Marmite Weetabix Chief executive of Weetabix Giles Turrell has warned that the price of one of the nation’s favourite breakfast are likely to go up this year by low-single digits in percentage terms. Reuters How Brexit affected Britain's favourite foods from Weetabix to Marmite Nescafé The cost of a 100g jar of Nescafé Original at Sainsbury’s has gone up 40p from £2.75 to £3.15 – a 14 per cent rise—since the Brexit vote. PA How Brexit affected Britain's favourite foods from Weetabix to Marmite Freddo When contacted by The Independent this month, a Mondelez spokesperson declined to discuss specific brands but confirmed that there would be "selective" price increases across its range despite the American multi-national confectionery giant reporting profits of $548m (£450m) in its last three-month financial period. Mondelez, which bought Cadbury in 2010, said rising commodity costs combined with the slump in the value of the pound had made its products more expensive to make. Cadbury How Brexit affected Britain's favourite foods from Weetabix to Marmite Mr Kipling cakes Premier Foods, the maker of Mr Kipling and Bisto gravy, said that it was considering price rises on a case-by-case basis Reuters How Brexit affected Britain's favourite foods from Weetabix to Marmite Walkers Crisps Walkers, owned by US giant PepsiCo, said "the weakened value of the pound" is affecting the import cost of some of its materials. A Walkers spokesman told the Press Association that a 32g standard bag was set to increase from 50p to 55p, and the larger grab bag from 75p to 80p. Getty How Brexit affected Britain's favourite foods from Weetabix to Marmite Marmite Tesco removed Marmite and other Unilever household brand from its website last October, after the manufacturer tried to raise its prices by about 10 per cent owing to sterling’s slump. Tesco and Unilever resolved their argument, but the price of Marmite has increased in UK supermarkets with the grocer reporting a 250g jar of Marmite will now cost Morrisons’ customers £2.64 - an increase of 12.5 per cent. Rex How Brexit affected Britain's favourite foods from Weetabix to Marmite Toblerone Toblerone came under fire in November after it increased the space between the distinctive triangles of its bars. Mondelez International, the company which makes the product, said the change was made due to price rises in recent months. Pixabay How Brexit affected Britain's favourite foods from Weetabix to Marmite Maltesers Maltesers, billed as the “lighter way to enjoy chocolate”, have also shrunk in size. Mars, which owns the brand, has reduced its pouch weight by 15 per cent. Mars said rising costs mean it had to make the unenviable decision between increasing its prices or reducing the weight of its Malteser packs. iStockphoto

“Unregulated PBS, like management consulting, would be able to continue trading with the EU, although even they could be indirectly affected.

“In such a scenario, it is likely that PBS firms, in particular those in the legal sector, would either relocate to the EU, or move resources to partner firms within the EU, in order to continue to trade on preferential terms.

“Both outcomes could have a negative effect on the UK’s trade balance, tax revenues and employment.”