The Catch-up: Mark Carney warns of instant problems after no-deal Brexit

What happened?

Food shoppers and motorists will be hit with immediate price rises in the event of a no-deal Brexit, the Governor of the Bank of England has warned. Mark Carney stepped up his criticism of no deal, warning British firms would be forced to close. He also said sterling would suffer if the UK leaves the EU without a deal. He said the biggest impact on prices would be “at the forecourt of the petrol station and in fruit and veg”.

How worried should we be?

Boris Johnson has consistently talked down warnings about the impact of no deal and has considerably stepped up planning to mitigate any fallout. Chancellor Sajid Javid this week announced a further £2 billion in funding for preparations. Mr Carney was responding to criticism from Brexiteers, saying the challenges should not be played down.

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.

Read more:

Tories lose by-election in Johnson's first defeat as PM (Sky News)

Dominic Raab accused of misleading the public over no-deal Brexit (Yahoo News UK)

No-deal Brexit could see 'substantial number' of businesses become unprofitable (The Independent)

UK faces potential 'consumer panic' and 'security gaps' (Sky News)

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