National Audit Office (NAO) chief Sir Amyas Morse warned it was entirely possible that a Brexit stand-off with the EU could turn sour.
And he said that if the UK got “tough” by withholding the entire £39 billion divorce bill, Brussels could seek revenge by refusing to sign “mutual” agreements to keep airlines in the sky.
He told MPs: “It’s not implausible. It is not impossible, and it could happen by mistake rather than deliberately.
“Agreements will require mutual goodwill and if we take a very tough attitude, and say take us to court for whatever money, it’s not impossible to think of scenarios where people may not be terribly well disposed to us.”
The warning came as the NAO chief predicted chaos at the border if Britain crashes out of the EU in March without a deal.
He said it was inevitable there would be “points of failure” across Government. And he warned Chris Grayling’s Department for Transport was underestimating the risks of a No Deal.
He said there was a worry the DfT believed the situation was “less risky than it actually is”.
Speaking to the cross-party Brexit Select Committee, the government watchdog said ‘No Deal’ preparations had improved dramatically in recent months. But he said Parliament would likely to have force MPs to sit throughout the night to pass a wave of necessary legislation before Brexit day.
And he hit out at the “secrecy” of Brexit talks – saying many civil servants had been forced to rely on reading NAO reports on Government departments to find out what has been happening.
Last month, France’s Minister for European Affairs said Eurostar trains may stop running in the event of a chaotic Brexit.
Nathalie Loiseau said there was a real possibility of France turning away trains and planes.
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