2018.03.1121:13:00UTC+00'No Deal' Brexit Could Cost UK, EU Firms £58 Billion - Report

Companies in Britain and the European Union could face an additional 58 billion pounds ($80 billion) in annual costs if there is a no-deal Brexit, with Britain's vast financial sector set to be the worst-hit industry, according to a report.

Firms across the EU's 27 countries other than Britain will have to pay 31 billion pounds a year in tariff and non-tariff barriers if Britain leaves the bloc without a deal, the report by Oliver Wyman management consultants and law firm Clifford Chance said.

In return, British exporters to the EU will have to pay 27 billion pounds a year.

“These increased costs and uncertainty threaten to reduce profitability and pose existential threats to some businesses,” the report said.

Britain is set to leave the EU in 2019 after voting in favor of ending more than four decades of political, economic and legal ties with the world's largest trading bloc.

In the absence of an agreement, trade between Britain and the other 27 EU members would default to World Trade Organization rules and tariffs, a sharp contrast to the access the UK has enjoyed as a member of the EU's single market.

The report showed 70 percent of the extra costs in Britain from a no-deal Brexit would be shared by five industries: financial services, cars, agriculture and food and drink, consumer goods and chemicals and plastics.

Financial services firms in Britain would suffer the biggest hit because they will have to set up new operations in the EU to continue serving clients.

The Bank of England has warned that about 10,000 finance jobs may leave Britain by the end of next year because of Brexit.