A no deal Brexit would increase costs for holidaymakers as higher credit card fees hit goods bought abroad, the Government has said today.
The news came in a series of ‘technical notices’ advising businesses on how to plan for no deal, released today by the Department for Exiting the EU.
DeXEU warned that online shoppers and holidaymakers would see prices rise because the ‘cost of card payments between the UK and the EU will likely increase’.
The notice said that, if Theresa May fails to agree a deal with the bloc before the October deadline, British customers will no longer be covered by a ‘surcharging ban’ on card fees that currently bans businesses from adding extra levies.
The Government’s own figures from earlier this year say that the surcharges, which were banned in January, cost Britons £166 million in 2015.
‘I am confident a good deal is within our sights. It is our top priority, it is our overriding priority.’ he said.
Mr Raab added that 80% of the EU Withdrawal Agreement had already been agreed, and that no deal was becoming less and less likely – but that the Government is preparing for every eventuality.
‘It is not what we want and it is not what we expect but we must be ready.’ he said.
‘We have a duty as a responsible government to plan for every eventuality.’
Mr Raab also laid the blame for a no deal outcome at the door of the EU.
‘Naturally we have to got to consider the alternative possibility, that the EU does not match our ambition and pragmatism, and we do not reach a deal,’ he said.
‘Let me be clear about this. This is not what we want. And it’s not what we expect. But, we must be ready.’