The Office for Budget Responsibility has laid out a stark warning for the British economy.

The British economy is likely to enter a serious recession, with a no-deal Brexit raising the prospect for a doubling of the budget deficit next year.

The idea of a no-deal Brexit has already risen many different fears. Consumer confidence has been pushed down throughout the Brexit process, as has the British Pound (GBP). Several industries are expected to be hit very hard in the case of a no-deal Brexit, including the critical export, real estate, and financial services industries. On the export front in particular, normal customs checks at new hard borders with the UK’s neighbors would mean a serious increase in the amount of time it takes goods to cross borders. According to the OBR, a no-deal Brexit would lead to serious trade barriers, a 2% contraction of the British economy, and a devaluation of the Pound.

Speaking on the matter, British Finance Minister Philip Hammond said, “the report that the OBR have published this morning shows that even in the most benign version of a no-deal exit, there would be a very significant hit to the UK economy, a very significant reduction in tax revenues, and a big increase in our national debt, a recession caused by a no-deal Brexit.” Both contenders for the UK’s next election have stated that they are prepared for a no-deal Brexit, if necessary.