What happens if the UK and EU fail to agree a Brexit deal?

No deal likely to damage relations with EU and Ireland, raise food prices and affect travel

Fears that the UK and the EU will not agree a trade deal were fuelled by Michel Barnier on Monday when he told envoys in Brussels that he cannot guarantee" an agreement.

Although hopes have been raised about a breakthrough on fishing, his words caused a drop in sterling and give a glimpse of the volatility that can be expected in the event of no deal.