THE UK leaving the European Union without a trade deal would have “chilling effects” on both sides of the English Channel, a leading business figure has warned.

This stark warning, from Confederation of British Industry director-general Carolyn Fairbairn, comes ahead of a summit of EU member states this weekend to discuss Brexit.

The CBI highlighted a “very real shared interest in securing an ambitious deal between the UK and EU, rather than focusing solely on the divorce settlement at this early stage”.

It added: “With supply chains connected across the Continent, UK-EU trade is worth well over €600 billion each year. Compared to a one-off departure bill of, some suggest, tens of billions of euros, the economic case for making rapid progress on a trade agreement is clear.”

Ms Fairbairn said: “For both sides, leaving the negotiating table without a deal shouldn’t be ‘Plan B’ but ‘Plan Z’. Whether it’s tariffs or regulation, a no deal scenario would have chilling effects on both sides of the Channel. At the CBI, we’ve been meeting our peer business organisations from across Europe, convening a clear, European business voice and making these messages heard.”

She added: “In today’s inter-connected economy which relies on supply chains crossing borders and nations, our fates are intertwined. The business community – in the UK and the EU – is united in wanting an agreement with as few barriers as possible.”