More than two hundred MPs are trying to protect job and manufacturing and have written a letter to Prime Minister Theresa to rule out a no-Deal Brexit. These MPs are from different political parties. PM is trying to gain support for her withdrawal bill. But if MPs do not back her deal, there is a huge possibility of a “no-deal” Brexit.
What is a “no-deal” Brexit?
A no-deal Brexit means that the United Kingdom will leave the European Union with no chances of having any agreements with the EU in future times. Nobody in the parliament appreciates this, but until the politicians put proper plans in place, nothing would happen, and there would possibly be no Brexit.
Warning of Richard Branson
Richard Branson, a British billionaire and founder of Virgin, has warned the country on this matter. He added that if a no deal Brexit takes place, the value of the pound will take a dive against the US dollar. Therefore, the United Kingdom leaving the EU without a deal would be bad for the economy of the UK.
Branson stated that a no deal Brexit could be “devastating” to the entire Virgin Group as the group would have no other option but to invest outside the UK. Virgin may lose about $125 million worth of contracts from Europe if Britain leaves the EU without a deal.
“The pound was at $1.53 when the referendum took place. The pound today it is at $1.22, $1.23, and the pound will collapse to parity with the dollar if there is a hard Brexit,” Branson said.
Leaving the European Union without a deal can result in the closure of “quite a few British businesses.”
Virgin Atlantic, the major airline of the group, has already suffered severe losses since the United Kingdom voted to leave the EU in 2016 as the purchasing power of the British Pounds plummeted in worldwide financial markets.
He went on to add that “All our costs are in dollars. Maintenance, plane costs, pretty well every cost is in dollars. And therefore, the bottom line hit of that was £100m a year, say.”
According to Branson, a hard Brexit refers to airfreight from Europe to the United States will disappear and that can result to “another £100m just down the drain“.
The dispute in the Rail system
Along with this, Branson had also criticized the rail franchising system in The United Kingdom. The franchise, a Virgin train which has been running on the West Coast mainline for about twenty-two years will face its end in March next year. Virgin and its operating partner, Stagecoach, got disqualify from rebidding. On this concern, Richard felt and said that all the train companies should contribute to the pension deficit.
“I’m very disappointed for everybody who works for Virgin Trains. They’ve done an extraordinary job over 22 years. Sad that a great company may be coming to an end,” Branson said.
To describe the entire situation, he said that the rail franchising system was a real mess and “the Department for Transport, in their wisdom, give you massive long lists of dos and don’ts, and it’s very difficult to be entrepreneurial, and that’s sad.”
Related: How the European Union Views the Brexit Unfolding
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