BRITAIN’s rural areas are facing a “no-deal disaster” as an alarming report today suggests the country’s multi-billion pound food export industry could be threatened if there is no withdrawal agreement with Brussels.

The National Audit Office[NAO], the spending watchdog, warns that without a deal the UK could be unable to export some animal products, enforce full control over UK fishing waters or export certain chemical products to the rest of the EU.

Its report says Michael Gove’s Environment Department[Defra], one of the most affected by Brexit, has made good progress in its withdrawal preparations, including starting to build new IT systems and recruiting more than 1,300 new staff, but still faces an “enormous challenge”.

It points out Defra needs to negotiate with 154 countries to introduce 1,400 different UK versions of current EU export health certificates. It is focusing on reaching agreement with 15 of these countries, accounting for 90 per cent of total exports, but will not reach the other 139 by March 2019.

“It has accepted the risk that UK firms exporting to countries where agreements are not reached may not be able to do so for a period after EU exit,” says the watchdog.

A no-deal would mean a significant increase in export health certificates needing to be processed by vets.

“Without enough vets, consignments of food could be delayed at the border or prevented from leaving the UK,” notes the NAO.

On protecting fishing waters, the report says due to “delays in procurement and planning” Defra is unlikely to reach its originally intended number of patrol vessels by March 2019.

It also refers to the UK’s chemical industry, the second largest manufacturing sector, with £17 billion of exports to the EU in 2017.

A no-deal would threaten its participation in the European Chemicals Agency. “Without this, UK chemical manufacturers would no longer be able to export products to EU member states as registrations of products would cease to be recognised by the EU.

“To recover market access, they would need to re-register their products on the EU's system via an affiliate or representative located in an EU member state. This is a lengthy process that cannot be started until the UK has left the EU,” explains the NAO.

Tim Farron, the Liberal Democrat environment spokesman said: “Now we know the full scale of the disaster that could unfold.

"If we crash out without a deal the UK could well not be able to export animal products, enforce control over our fishing waters nor export chemical products to the rest of the EU.

"This is why the Government desperately need to rule out the no-deal option and why the people deserve to have the final say on the deal and an opportunity to exit from Brexit,” added the Cumbrian MP

Labour’s Sue Hayman said: “We are alarmed by the lack of planning carried out by Michael Gove’s department. With only months to go until we leave the EU and the necessary legislation and planning for a possible no deal scenario has not been done.

“The Government must raise the priority of food security during the Brexit negotiations and in the forthcoming Agriculture Bill. Michael Gove must explain why his department has been unable to get up to speed and to take the future food security of our nation more seriously,” added the Shadow Environment Secretary.

The NAO pointed out how Defra last September said it was confident it could have alternative arrangements in place if the UK exited without a deal in March 2019.

Amayas Morse, head of the spending watchdog, said: “Defra has achieved a great deal but gaps remain and with six months to go it won’t deliver all it originally intended in the event of no-deal, and, when gaps exist, it needs to focus on alternatives and mitigations.”

The NAO report comes just 48 hours after the Commons Scottish Affairs Committee was told farmers faced a “catastrophe” in the event of a no-deal as World Trade Organisation terms would hike tariffs on Scottish lamb and beef by up to 80 per cent. In such circumstances, only a quarter of agricultural businesses would survive, MPs were told.

It also comes ahead Theresa May’s special no-deal Cabinet on Thursday, which will precede the release of the next tranche of technical no-deal Government papers.

And today Jean-Claude Juncker, the European Commission President, gives his State of the Union address, which is expected to touch on the progress or otherwise of Brexit.

Meanwhile, it emerged last night Michel Barnier, the EU’s chief negotiator, had ticked off Dominic Raab, the Brexit Secretary, after he discovered Whitehall had written to the 27 other member states, calling for side deals on transport should there be no withdrawal agreement.

Mr Barnier is said to have confronted Mr Raab about the letters last week in Brussels, telling him: “If there is no deal, there is no trust.”