British holidaymakers face credit card charges in EU under no-deal Brexit
4 min read
UK credit card users who visit EU countries face a hike in charges under a no-deal Brexit, new Government information has revealed.
The revelation came as ministers released the first raft of technical notices to inform businesses how to cope with Britain potentially crashing out of the bloc next March without a deal.
They include issues affecting banking, medicines and clinical trials, nuclear research, workplace rights and farm payments.
The documents, which make up 25 of the total 80 technical notices due, say the cost of card payments between the UK and EU will "likely increase".
Furthermore, companies will be able to charge additional card fees as they will no longer be covered by a ban on surcharges.
UK consumers could also face having to pay more for products online from European retailers.
A notice on financial services also makes clear that UK citizens in the European Economic Area “may lose the ability to access lending and deposit services, insurance contracts”.
Meanwhile businesses were warned to start preparing for customs declarations, including considering whether to employ customs brokers and freight forwarders.
And given that the issue of the Irish border remains unresolved, the papers say businesses trading with the Republic of Ireland are advised that they may need to consult the Dublin government.
Elsewhere, the documents outline that new regulations will be needed for tobacco products, including new cigarette packet warnings due to copyright issues.
And new medicines will need UK approval before they can be made available, with the British regulator, the Medicines Healthcare Products Regulatory Agency (MHRA), due to take on the role of the EU.
In a speech to coincide with the first bulk of information, Dominic Raab said reaching a good deal was “by far, the most likely outcome” and that roughly 80%, of the Withdrawal Agreement had now been agreed.
On the potential of a no-deal outcome, he said: “If, as I expect, the EU responds with the same level of ambition and pragmatism, we will strike a strong deal that benefits both sides.
“And at the same time, naturally we have got to consider the alternative possibility, that the EU does not match our ambition and pragmatism, and we do not reach a deal.
“Let me be clear about this, this is not what we want and it’s not what we expect. But, we must be ready. We have a duty, as a responsible government, to plan for every eventuality.
“And to do this, we need to have a sensible, responsible and realistic conversation about what a no-deal situation really means in practice.”
He added that ministers had the funding for an extra 9,000 staff to be recruited into the civil service, on top of the current 7,000 “to accelerate government preparations as and when we need to”.
The Brexit Secretary also said the documents would end “misinformation that has been put about lately” such as the army being asked to deliver food supplies and reports of a “sandwich famine”.
However, Health Secretary Matt Hancock wrote to NHS organisations telling them drug companies would be asked to stockpile six weeks-worth of medicines in preparation for a no-deal Brexit.
He said: "Clinicians should advise patients that the government has plans in place to ensure a continued supply of medicines to patients from the moment we leave the EU.
"Patients will not need to and should not seek to store additional medicines at home."
'THIN ON SUBSTANCE'
Shadow Brexit Secretary Keir Starmer said the Government had shown through the documents that it was “simply not prepared” for a no-deal scenario.
“The speech was thin on detail, thin on substance and provided no answers to how ministers intend to mitigate the serious consequences of leaving the EU without an agreement,” he said.
“We are eight weeks out from the deadline for reaching an agreement.
“Ministers should be getting on the job of negotiating a Brexit deal that works for Britain, not publishing vague documents that will convince no one.
“A no-deal Brexit has never been viable and would represent a complete failure of the Government’s negotiating strategy.”
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