MONEY

Leaving without a deal would mean an immediate Brexit on March 29 after tearing up a 21-month transition agreement. This included giving £39billion to the EU, which ministers would no longer have to pay, a House of Lords report claims.

GOODS TRADE

The Chequers agreement effectively proposed keeping Britain in the single market for goods and agriculture to preserve ‘frictionless’ trade and protect the economy.

Customs checks on cross-Channel freight would cause havoc at ports, hitting food supplies and other goods.

Even Brexiteers admit to a big economic impact in the short term. Britain could waive customs checks on EU produce to free up backlogs, but would Brussels do the same?

TARIFFS

All EU-UK trade in goods is free of tariffs in the single market.

Trade would revert to World Trade Organisation rules. The EU would charge import tariffs averaging 2-3 per cent on goods, but up to 60 per cent for some agricultural produce, damaging UK exporters.

We have a trade deficit with the EU of £71billion – they sell us more than we sell them – so the EU overall would lose out.

German cars and French agriculture would be worst hit, as would UK regions with large export industries. Tariffs could also mean price inflation. But UK trade with the EU is 13 per cent of GDP and falling compared to non-EU trade, which generates a surplus and is likely to grow. The outlook would be boosted by Britain’s ability to strike trade deals.

IMMIGRATION

The UK would immediately have control over its borders and freedom to set migration policy on all EU migrants.

UK nationals would likely lose their right to live and work in the EU. There would be legal uncertainty for the 1.3million Britons living in the EU and the 3.7million EU nationals here.

CITY OF LONDON

Many firms have already made contingency plans for no deal, but there would probably be a significant degree of disruption and an economic hit.

Ministers would be likely to take an axe to tax and regulations to preserve the UK’s economic advantage.

AEROPLANES

Fears of planes not being able to fly appear far-fetched – unless the EU is determined to destroy both business and tourism. Rules to keep planes in the air are likely to be agreed. The EU has many deals with non-EU countries as part of its Open Skies regime.

EUROPEAN COURTS

Britain would be free from the edicts of the European Court of Justice in Luxembourg and all EU laws. Parliament would be sovereign.

FARMING & FISHING

THE UK would quit the Common Agricultural Policy, which gives farmers and landowners £3billion in subsidies. Ministers would come under pressure to continue a form of subsidy.

NORTHERN IRELAND

Northern Ireland would be outside the EU, with no arrangements on how to manage 300 crossing points on the 310-mile border.

The EU would want Ireland to impose customs and other checks to protect the bloc’s border – something it has said it will not do. No deal could blow a hole in the Good Friday Agreement, with pressure on all sides to find a compromise.