Brexit? or No Brexit?

The UK Prime Minister Boris Johnson has vowed to leave the EU “come what may” by the 31 October – the date the UK must depart if no deal has been reached.

An extra £2.1bn of funding has been announced to prepare for such a no-deal Brexit.

How could you be affected if the UK does leave the EU without an agreement?

1. The contents of your shopping basket may change

What you find on the supermarket shelves could well be where you see the first effects.

Almost 30% of the UK food currently comes from the EU, and it is likely that some foods, such as fresh vegetables and fruit, will become more scarce and more expensive in the event of no deal.

Increased import taxes and transport delays could all mean a rise in prices. And if a no-deal Brexit was followed by a fall in the value of the pound, that would also have the same effect.

Supermarkets themselves have warned that there could be empty shelves and higher prices.

And Bank of England governor Mark Carney has said that, in a worst-case scenario, our shopping bills could increase by 10%.

The government has said that while a no-deal Brexit alone won’t lead to food shortages, consumer behaviour could. Panic buying could mean food retailers run short of some products.

In preparation, supermarkets say, they have been stockpiling some foods – but they are unable to do that for some fresh fruit and veg.

Sainsbury’s has also said October would be one of the worst times for the UK to exit the EU without a deal because warehouse capacity is already strained by the seasonal stock build-up ahead of Black Friday and Christmas, limiting supermarkets’ ability to store goods ahead of Brexit.

Shoppers planning to buy from companies based in the EU, Norway, Liechtenstein and Iceland after a no-deal Brexit have also been warned credit and debit card charges may be higher and payments may take longer.

2. You will need to take extra measures when travelling to Europe

Millions of people from the UK travel abroad each year – the vast majority of journeys made to Europe.

If you are planning to make a journey to an EU member state after Brexit, the government is advising you to check you have the right paperwork.

Travel to Ireland will not change, even if there’s no deal. You’ll continue to be able to travel and work there in the same way as before.

Passports

The government is advising you to make sure your passport is valid for at least six months if you are travelling to most countries in Europe – the full list is here.

Until recently, UK citizens who renewed their passport before it expired could have up to nine months of the remaining validity added to their new travel document.

But the government has now warned that this time carried over may not count towards the six-month requirement after a no-deal Brexit. You can check if your passport has enough time left with this government tool.

You’ll need to renew your passport before travelling if you do not have enough validity left. It usually takes three weeks.

Visas

You won’t need a visa for stays of up to 90 days out of any 180-day period in the EU or Iceland, Liechtenstein, Norway and Switzerland (the European Economic Area). However, you may need a visa or permit to stay for longer, or to work or study.

When new rules are confirmed, information about visa requirements will be on each country’s travel advice page.

Border control

The government has also advised that at EU borders you may need to:

  • show a return or onward ticket
  • show you have enough money for your stay
  • use separate queueing lanes from EU, EEA and Swiss citizens
  • European health cover

In addition, if there is no deal, then in theory the cover provided by your European Health Insurance Card (EHIC) would cease to exist.

The government is advising travellers “whether there’s a deal or not” to “get appropriate travel insurance with healthcare cover”.

Travel

However you intend to travel, in the event of no-deal Brexit, the government says, you should check before you leave for any delays or disruption.

If you intend to drive in the EU, you’ll need some extra documents:

a “green card”, which proves your insurance provides the minimum required cover (obtained from your vehicle insurance company)

a GB sticker

an International Driving Permit for some countries (you can check if you need one on the Post Office website)

The government says flights, ferries and cruises, the Eurostar and Eurotunnel and bus and coach services between the UK and the EU will continue to run as normal.

An earlier government assessment had warned of long queues at London’s St Pancras International, the main Eurostar terminal in the UK, but Eurostar bosses have said they are working to ensure their services run as smoothly as possible.

However, the government does warn some bus and coach services to non-EU countries, such as Switzerland or Andorra, may not be able to run.

Bank cards

If you have a UK bank account and intend to use your bank card to pay for goods and services while you are in the EU as well as Iceland, Liechtenstein and Norway, the government has warned that it may become more expensive.

3. UK nationals living abroad may have to take extra measures

The UK government has requested that EU countries reciprocate its promise to uphold the rights of EU citizens in the UK, meaning UK citizens living in the EU would be able to continue their lives broadly as now.

In event of no deal, this would ensure they would have continued access to employment, healthcare, education, benefits and other services.

The government has announced a public information campaign and an increase in consular support for Britons living abroad, at a cost of £138m.

It advises UK citizens living in the EU to subscribe to updates from the relevant country advice pages.

Health

UK nationals living in, working in, or visiting the EU may find their access to healthcare in EU member states will change after the UK leaves the EU with no deal. This will depend on decisions made by each country.

However, the UK government says it is seeking bilateral agreements to maintain healthcare rights, as a top priority.

Information on how to access healthcare abroad can be found on the NHS website.

Pensions

The UK government will continue to pay state pension, child benefits, and disability benefits to eligible UK nationals in the EU.

Tax

The UK’s exit from the EU will not change existing double taxation arrangements, which apply to EU countries.

These ensure everyone – not just British citizens – living in a country that has a treaty with the UK will not pay tax in two countries on the same income or gain – and determine which country has primary taxing rights.

4. EU citizens need to apply for ‘settled status’

The UK government has reached an agreement with the EU, as well as Norway, Iceland, Liechtenstein, and Switzerland, that will protect the rights of EU citizens and their family members living in the UK.

There are about 3.7 million EU citizens living in the UK.

5. Importing goods from the EU may get more expensive

Importing goods from the EU is likely to get more expensive when free movement of goods ends with the UK’s departure.

As a member of the EU, UK firms don’t have to pay extra duties, taxes or have customs checks on goods travelling to or from the EU.

But after a no-deal Brexit, new rules will apply. UK businesses will need to apply the same processes to EU trade that apply when trading with the rest of the world.

resource: bbc.com