Brexit news latest – Brexit trade deal failure would HALVE UK growth, KPMG warns but Lord Frost hints agreement imminent

FAILURE to secure a post-Brexit trade deal with the EU would HALVE the UK's economic growth, accountancy firm KPMG has warned.

Growth would be a measly 4.4% without a deal, they forecasted, compared with 10.1% if a deal is struck – a huge gulf just as the UK attempts to recover from the deepest records since records began thanks to coronavirus.

The news comes as Britain's chief Brexit negotiator Lord Frost told Boris Johnson to expect a Brussels trade deal early next week, possibly Tuesday.

However, talks could still collapse over fishing and red tape, with both sides urging the other to “get real”.

With the end of the Brexit transition period looming on December 31, and any deal needing to be struck well before that in order to be ratified in time, there is a sense of desperation on both sides to get a deal sorted.

Follow our Brexit live blog for all the latest news and updates…

  • Dan Keane

    EU NEGOTIATORS TO UPDATE BLOC ON FRIDAY

    EU negotiators are due to update envoys of the bloc's 27 member states on the latest in trade talks with Britain at 7am on Friday, two diplomatic sources told Reuters.

    'Brexit update' has been added to the agenda of EU Brussels ambassadors meeting –but the sources said Michel Barnier's negotiating team could still cancel the closed-door briefing depending on how talks with the UK are going.

  • Dan Keane

    TWO SIDES TO 'NEGOTIATE INTENSELY'

    European Commission spokesman Eric Mamer has said the two sides will “negotiate intensely” this week as talks enter the crucial final stage.

    He said: “What is clear is that we continue to negotiate intensively with our UK partners and we aim, obviously, to find a deal when the conditions will be there.

    “We are not going to give a blow-by-blow account of what negotiators are working towards.”

  • Dan Keane

    KPMG WARNS OF STALLED ECONOMIC RECOVERY WITHOUT DEAL

    Accountancy firm KPMG have warned of a stalled economic recovery should the UK fail to agree a post-Brexit trade deal with the EU.

    In a report, the company say GDP growth would be 4.4% next year without a deal, compared to 10.1% if the UK and the bloc maintained existing relations.

    GDP is expected to fall 11.2% this year following the economic devastation wrecked by the coronavirus pandemic.

  • Dan Keane

    SHARMA: UK 'HOPING TO GET DEAL'

    Britain hopes to get a Brexit trade deal but the EU must understand that it is now dealing with a sovereign nation, Business Secretary Alok Sharma said this morning.

    “I hope that we will end up with a free trade agreement,” Sharma told Sky News.

    “We have made progress but there is still some way to go and we need to make sure that the EU understands that the UK is a sovereign nation and that's the basis on which our arrangement with the EU is in the future.”

  • Abe Hawken

    'DEAL FAR FROM CERTAIN'

    Boris Johnson has warned that it is “far from certain” that Britain will get a post-Brexit trade deal with the EU.

    The Prime Minister briefed the Cabinet on the latest talks – which are continuing this week in Brussels – with both sides warning time is short if they are to get an agreement in time for the end of the current transition period at the end of the year.

    His official spokesman said that Mr Johnson had made clear that while the UK was working hard to find an agreement, there were still “significant issues” that needed to be resolved.

    “The PM said that his position hasn’t changed: the UK is keen to secure a deal with the EU, but not at the cost of our core principles around sovereignty and control over our laws, borders, money – and our fish,” the spokesman said.

  • Abe Hawken

    'SECURITY DOWNGRADE'

    Losing access to criminal databases under a no-deal Brexit would have a “major operational impact” for police, senior officers have warned.

    The UK could face a “security downgrade” in January if there is no negotiated outcome on a Brexit deal in the next few weeks, according to the Commons Home Affairs Committee.

    Committee chairman Yvette Cooper cited “extremely serious” and “troubling” letters she had received from the National Crime Agency (NCA) and the National Police Chiefs’ Council (NPCC) on the subject.

  • Abe Hawken

    CHECK DELAY

    New post-Brexit checks at Northern Ireland’s ports will not be ready until the middle of next year, the Stormont Agriculture Minister has said.

    Goods coming into Northern Ireland from Great Britain will be subject to inspections from January following the end of the transition period.

    Although the region will be outside the European Union, under a deal to avoid new checks or controls on the Irish border, Northern Ireland will enforce the EU’s customs code at its ports.

    Edwin Poots said temporary facilities will be in place by the middle of December.

  • Chiara Fiorillo

    'QUALITY' OF DEAL

    The European Commission has said they would find a “creative solution” in order to facilitate a deal.

    EU chief Ursula von der Leyen has said she is more interested in the “quality” of the deal than the “craziness” of deadlines.

  • Chiara Fiorillo

    SCOTLAND'S RETAIL INDUSTRY HIT BY COVID AND BREXIT

    Paul Martin, KPMG partner, said: “Shifting consumer behaviour, driven by Brexit and Covid-19 uncertainty is having an unprecedented impact on Scotland's retail industry.

    “We're just a week away from Black Friday and in the middle of the so-called 'Golden Quarter', when the sector typically witnesses its biggest gains.

    “This winter, to simply survive, retailers will have to double down on innovative strategies, pivot towards profitable online revenue growth and work even harder to tempt some shoppers back to physical retail spaces.”

  • Chiara Fiorillo

    SECOND-HAND CARS TO BECOME MORE EXPENSIVE

    Brexit is set to make it more expensive for Northern Ireland car dealers to get second-hand cars from Great Britain.

    At the moment, when dealers buy a vehicle in GB and sell it in NI, they only have to pay VAT on the profit, reports BBC News.

    However, once Brexit comes into force in January they will have to pay VAT on the full price they paid for the car in GB.

  • Chiara Fiorillo

    WHY DID DOMINIC CUMMINGS LEAVE DOWNING STREET?

    The exact reasons why Dominic Cummings left Downing Street are not known, but it is believed his departure was due to an increasing power struggle within the Conservative Party.

    Initially, he was supposed to leave by the end of 2020, but it is believed his resignation was brought forward by a “shouty row” at Downing Street on Thursday, November 12.

    Mr Cummings was the centre of a political storm in May after it came to light that he broke coronavirus restrictions to travel 400 miles from London to County Durham.

  • Chiara Fiorillo

    JOE BIDEN'S VIEW ON BREXIT

    Biden tweeted about the Brexit issue in September, saying, “We can’t allow the Good Friday Agreement that brought peace to Northern Ireland to become a casualty of Brexit.

    “Any trade deal between the US and UK must be contingent upon respect for the Agreement and preventing the return of a hard border. Period.”

  • Chiara Fiorillo

    'UNITED BEHIND NEGOTIATIONS'

    No10 admitted “key elements of the draft text are not agreed” but insisted “the Government is united behind the negotiation position”.

    EU chiefs said they are ready to take talks right down to the wire and find a “creative solution” to avoid an accidental No Deal.

    An EU diplomat said the cut-off point is New Year’s Eve and Commission chief Ursula von der Leyen said she is more interested in the “quality” of the deal than the “craziness” of deadlines.

  • Chiara Fiorillo

    TREASURY IS 'ANTI-NO DEAL'

    A Government source said: “It’s not a secret that the Treasury has always been anti-No Deal and Michael Gove has concerns about the Union.”

  • Chiara Fiorillo

    DEAL 'COULD BE READY NEXT WEEK'

    Brexit boss David Frost has told Boris Johnson to expect a Brussels trade deal “early next week”, The Sun can reveal.

    Britain’s chief negotiator has pinpointed “a possible landing zone” as soon as next Tuesday.

    But talks could still collapse over fishing and red tape, with both sides urging the other to “get real”.

  • Chiara Fiorillo

    EUROPE DELAYS LAUNCH OF NEXT YEAR'S CARBON MARKET AUCTIONS

    Auctions of carbon permits in the European Union's emissions trading system next year will not start until late January or early February, the European Commission said on Tuesday.

    For “technical reasons”, auctions of permits on behalf of most EU countries, plus Iceland, Liechtenstein and Norway, will kick off later than usual, the Commission said.

    This year's EU ETS auctions began on January 7.

    Poland auctions its permits separately.

  • Chiara Fiorillo

    STARMER: CORBYN'S READMISSION TO LABOUR MARKS 'PAINFUL DAY' FOR JEWISH COMMUNITY

    Labour leader Sir Keir Starmer has said the readmission of his predecessor Jeremy Corbyn to the party just weeks after he was suspended marked “another painful day for the Jewish community”.

    Sir Keir said he would “not allow a focus on one individual to prevent us from doing the vital work of tackling anti-Semitism” and vowed to make the Labour Party “a safe place for Jewish people”.

    Sir Keir tweeted: “I know that this has been another painful day for the Jewish community and those Labour members who have fought so hard to tackle antisemitism. I know the hurt that has been caused and the trauma people have felt.

    “Jeremy Corbyn's statement in response to the EHRC report was wrong and completely distracted from a report that identified unlawful conduct in our tackling of racism within the Labour Party. This should shame us all.”

  • Chiara Fiorillo

    JEREMY CORBYN 'PLEASED' TO BE READMITTED TO LABOUR

  • Chiara Fiorillo

    'ADJUSTMENT PERIOD'

    Boris Johnson has been urged to negotiate an adjustment period into any final trade agreement with the European Union to provide “breathing space” of up to six months for businesses.

    The post-Brexit trade talks have entered into a decisive week, with Cabinet ministers among those signalling that the discussions have entered into last chance saloon territory.

    Sir Ed Davey, leader of the Lib Dems and former Siemens boss Juergen Maier have urged the Prime Minister to consider an adjustment period as he warned that industry is already dealing with the “unprecedented” challenges caused by Covid-19 and that the threat to some firms was “existential”.

    “Uncertainty is bad for business at any time, but the combination of the challenges of battling the impact of coronavirus restrictions alongside having now to cope with the huge challenge of complying with new trading procedures, at very short notice, could be very damaging,” they said.

    “So we urge you to negotiate the reasonable and practical measure of a three to six-month adjustment period in the EU trade deal, to save jobs and businesses.”

  • Chiara Fiorillo

    WHEN IS THE TRANSITION PERIOD FINISHING?

    The transition period will end on December 31, 2020.

    At the end of the transition phase, there will be two possible outcomes:

    – A UK-EU trade deal comes into force

    – The UK leaves the EU without a deal

  • Chiara Fiorillo

    BREXIT CHECKS AT PORTS WON'T BE READY UNTIL MIDDLE OF NEXT YEAR

    New post-Brexit checks at Northern Ireland's ports will not be ready until the middle of next year, the Stormont Agriculture Minister has said.

    Goods coming into Northern Ireland from Great Britain will be subject to inspections from January following the end of the transition period.

    Edwin Poots said temporary facilities will be in place by the middle of December.

    “The development of the facilities will not be completed until the middle part of next year in terms of the programme that has been paid for by the UK Government,” he told Members of the NI Assembly.

    “They have given some money for the development of temporary facilities which will be available for the middle of December and consequently there will be facilities available for veterinarians in place at the various ports.”

  • Lottie Tiplady-Bishop

    PIERS MORGAN FUMING OVER GENDER NEUTRAL TERM ‘FISHERPEOPLE’

    Piers Morgan flew into a rage on today's Good Morning Britain after discovering the BBC has replaced fishermen with the gender neutral term fisherpeople.

    The outspoken TV star, 55, was lost for words after listening to a clip of the BBC's Europe Editor Katya Adler on Radio 4 discussing Brexit and the UK's fishing industry.

    Katya's use of fisherpeople follows BBC style guidelines which states “men” should be left out of job roles that aren't exclusively male.

    After listening to it for a second time, Piers held out his hands and yelled: “God's sake. Let it stop! Let it stop!”

    He was irked further after reading that a study had found just 2.7 per cent of people who fish are female.

  • Lottie Tiplady-Bishop

    WHAT IS A NO DEAL BREXIT?

    A No Deal departure from the European Union means leaving without formal arrangements for the future relationship.

    Britain's trade, customs and immigration rules were tied up with the single market and a host of EU regulatory bodies.

    The UK ended up leaving the EU on January 31 with a transition period until December 31 2020.

    While we did leave with a deal – in which this transition period was agreed – there is still the possibility of ending up in a no deal scenario still.

    If there is no arrangement for our future relationship by the end of this period then Britain will have left the EU with no deal and will trade on World Trade Organisation rules.

  • Chiara Fiorillo

    BREAKING: JEREMY CORBYN TO BE READMITTED TO LABOUR PARTY

    Jeremy Corbyn is to be readmitted to the Labour Party after his suspension.

    In a statement, the former Labour leader said he regretted any hurt caused by a statement he made in the wake of a report by the equalities watchdog into antisemitism.

    At the time, he said said the problem was “dramatically overstated for political reasons” by opponents and the media.

  • Chiara Fiorillo

    KEEN TO SECURE A DEAL

    The Prime Minister's official spokesman said: “The PM said that his position hasn't changed: the UK is keen to secure a deal with the EU, but not at the cost of our core principles around sovereignty and control over our laws, borders, money – and our fish.

    “Significant issues remain, particularly on the so-called level playing field and fisheries. We are working hard to find solutions which fully respect UK sovereignty, but it is far from certain that an agreement will prove possible and time is now very short.

    “The PM said that, if we cannot find suitable compromises with our European friends, we will leave the transition period on Australia terms on January 1.

    “The PM said he was incredibly confident that the UK will thrive with or without a free trade agreement with the EU.”

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