Brexit deal failure will be '˜highly damaging' for industry

Manufacturers from across Europe have issued a warning that failure to achieve a deal on the UK's departure from the European Union will be 'highly damaging' for industry in both Britain and the rest of the continent.

The warning, on the day Prime Minister Theresa May triggers withdrawal talks under Article 50, came from the Ceemet group of organisations representing more than 200,000 manufacturers. Britain’s EEF – which forms part of the group – said failure to reach a deal would risk the “lifeblood” of Britain’s economic success.

Meanwhile, the UK’s digital industry trade body said it was vital for tech companies to avoid a “chaotic” Brexit which sees the UK crash out of the EU on World Trade Organisation terms.

And the TUC urged Mrs May – who has insisted an exit agreement and trade deal can be completed within 18 months – to take her time over negotiations in order to ensure that British workers’ rights keep pace with the remaining 27 EU states.

Speculation over a “hard Brexit” on WTO terms has mounted since Mrs May declared that “no deal is better than a bad deal”.

Foreign Secretary Boris Johnson has said exit without a deal would be “perfectly OK”.