Retailers to endure 20% rise in costs post-Brexit according to government

1079
Brexit

The retail sector is likely to endure price rises of 20 per cent after Brexit, according to a new leaked government document seen by Sky News.

The government’s own analysis of the financial impact of Brexit states retailers will see an added cost after the UK departs from the EU, including a 16 per cent rise in food and drink costs.

This is due to non-tariff barriers which will come into place once the divorce is completed. These represent the new issues that will arise like extra customs checks, added paperwork, and diverging regulatory standards.

Economists prepared the report for cabinet ministers ahead of the today’s discussions on future trading relationships.

These staggering cost increases could have devastating effects on the industry, which is already struggling to come to terms with the rising costs brought on by the devaluation of the pound since the Brexit vote.

“This document does not represent Government policy and does not consider the outcome we are seeking in the negotiations,” a government spokesperson told Sky News.

“As ministers clearly set out in the House of Commons, this is provisional internal analysis, part of a broad ongoing programme of analysis, and further work is in progress.

“We are seeking an unprecedented, comprehensive and ambitious economic partnership – one that works for all parts of the UK. We are not expecting a no-deal scenario.”

Click here to sign up to Retail Gazette’s free daily email newsletter

4 COMMENTS

  1. “This is due to non-tariff barriers which will come into place once the divorce is completed.”

    Since we are mostly importing food from abroad, why are we in the UK going to impose costly non-tariff barriers on our imports? Of course we aren’t, so what is the basis for this analysis. It also doesn’t seem to assume we will seek cheaper sources of food and drink imports from outside the EU. All in all, it doesn’t sound a very realistic scenario.

      • Because they have a rubbish “deal” that they are desperate to spook MPs into voting for.
        They have been cranking the handle on the made up stats machine ever since the Treasury’s report about a “punishment budget”. This is just another, more desperate, turn of the handle.

LEAVE A REPLY

Please enter your comment!
Please enter your name here