Businesses have called for clarity on their future as a no-deal Brexit looms.
Prime minister Theresa May’s withdrawal agreement was defeated in the Commons by 149 votes last night.
MPs will vote this evening on whether to leave the EU without a deal on 29 March.
The government announced this morning that in the event of a no-deal in the short term 87% of all goods entering the UK would not face any tariffs and import taxes would remain for 13% of incoming goods. The majority of exports will be subject to tariffs under WTO rules.
No new checks or controls on goods will be introduced on goods moving across the Irish border.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Even as the Brexit clock approaches midnight, MPs continue to squabble. Yet it is the public who will feel the impact of a no-deal Brexit – tariffs, non-tariff barriers and currency depreciation will all push up costs and reduce the choice on the shelves we currently enjoy.
“Businesses are exasperated by the lack of clarity over their future trading arrangements. Hundreds of ships are currently sailing towards Britain without a clear understanding of the tariffs, checks, or documentation requirements they will face when they arrive. Politicians must swallow their pride and find an agreement that can command the support of the House.”