Report: No-deal Brexit could cripple economy

A new report from the United Kingdom's Institute for Government think tank warns of the immense pressure on the economy in the case of a no-deal exit from the European Union.

The report outlines just how uncertain the future would be, indicating that every governmental issue other than Brexit would be overshadowed.

In its report, the institute predicted that the union of the UK would come under "unprecedented pressure" in the event of a no-deal Brexit.

Prime Minister Boris Johnson has unveiled a Brexit Cabinet committee tasked with handling the UK's preparations for a no-deal exit from the EU-considered the government's "No 1 priority".

The prime minister told his Cabinet the new group will meet daily and direct operations from the Cabinet Office Briefing Rooms, typically used by ministers for emergency responses.

"No-deal is a step into the unknown: the prime minister's second 100 days will be even more unpredictable than his first," the report said, adding that the EU is unlikely to agree to negotiate any "side deals" to soften the impact.

"Rather than 'turbocharging' the economy, as Johnson has suggested, the government is more likely to be occupied with providing money and support to businesses and industries that have not prepared or are the worst affected by a no-deal Brexit-as well as dealing with UK citizens in the EU, and EU citizens here," it said.

Dominic Raab, the new British foreign secretary, confirmed that the government had been reorganized with the objective of gearing up for no-deal. He told the BBC that ministers had "set up the structures to turbocharge our preparations" and the EU had to offer some changes or the UK would walk away.

In a shift of tone from the business community, Carolyn Fairbairn, director-general of the Confederation of British Industry, called in an article in The Times for a "new spirit of pragmatism and flexibility".

"Now is the time to shift to an emergency footing," Fairbairn said. "While it's not possible to seal our economy from all the damage the floodwaters of no-deal will cause, we can lay down the sandbags and protect as much we can."