What does a no-deal Brexit mean?

7 December 2020, 12:47 | Updated: 10 December 2020, 20:43

Brexit deal: The UK is approaching the end of the transition period. Picture: PA

By Zoe Adams

Brexit negotiations are in full force as Boris Johnson and the government try to negotiate with European leaders - but what does a no-deal Brexit mean for the UK? And what happens if no deal is reached?

The UK’s Brexit deadline is approaching on December 31, 2020 and now full negotiations are taking place as Boris Johnson and the government fight to leave the European Union with a deal.

Now, four years after the UK voted to leave the European Union, it’s looking increasingly likely the UK could have a no-deal Brexit as the two sides refuse to budge on issues such as fishing rights and sovereignty.

In the latest talks, the British PM and the European Commission president Ursula von der Leyen agreed to extend the deadline and continue to explore as many avenues as possible to break the current impasse.

The pair will talk again on Sunday, December 13 to decide whether to continue talks - but what would happen if they decided to walk away?

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So what does a no-deal Brexit mean? What happens next if no deal is reached? And what are the odds and chances of a no-deal Brexit?

Boris Johnson and the government are in the final stages of a possible Brexit deal. Picture: PA

What does a no-deal Brexit mean?

This would mean the UK departs from the European Union with no formal or legal arrangements about the future of the pair's relationship.

This means an uncertain time ahead for important factors such as trade, travel and immigration.

What would happen if a no-deal Brexit happens?

Currently, the UK and Brussels are in last-minute talks to agree on three main issues - a level playing field, governance and access to fishing rights in UK waters.

If the UK leaves without a deal, as of December 31 2020, we will no longer be members of the single market and customs unions, meaning Britain will need to trade in accordance to the World Trade Organisation - this could lead to higher tariffs on imports and exports.

Other aspects would also need to be sorted including security, law enforcement, medical licensing and regulation and aviation.

Aspects such as border checks, transport between the UK and EU and general travel costs for going to the EU are also discussion points.

Michael Gove has headed to Brussels for last minute Brexit negotiations. Picture: PA

What are the chances of a no-deal Brexit?

As talks go down to the wire in December, Boris Johnson told reporters that there is a "strong possibility" the UK will fail to strike Brexit deal with EU.

The transition period is due to end on New Year’s Eve and bookies odds of a no-deal Brexit are extremely high.

However, foreign Secretary Dominic Raab and Michel Barnier have remained positive a deal can be made.