The average weekly shop will become "much more
expensive" as the cost of importing everyday items rises, a third in the
event of a no-deal Brexit, a major trading group has warned. Particularly hard
work will be done in homes early next year and early spring. Britain will be
left without a future trade deal with the European Union at the end of December
unless struck in the next few weeks.
Traders have already been asked to prepare for a no-deal Brexit.
Logistics UK chief executive David Wells, formerly known as the Freight
Transport Association, urged ministers to intensify efforts towards an
agreement as they warned of steep prices ahead. Potential barriers include
restrictions on the number of lorry access permit available to enter the
European Union, he said.
In a letter to The Sunday Times newspaper, he warned:
"Every day the household goods we import will become expensive under the
World Trade Organization tariff, some 30 percent or more.
"This will make domestic shopping carts more expensive,
especially in the early part of 2021 when we rely on imports of a lot of our
food." Cabinet Minister Michael Gov has admitted that leaving the
transition period without a trade deal would create "some unrest”. In his
letter, Mr. Wells said: "The real cost of moving goods will also increase
if new vehicles, parts, and tires are also subject to tariffs.
"This is more than 'unrest', as suggested by Mr. Gove
last week, and logistics businesses, operating at a 2 percent margin, cannot
afford to incur these costs." On concerns around allowing the lorries to
use the EU market, he said the UK's quota would be reduced by "a factor of
four".
He said that this fact alone would endanger business across
the country. "We are urging the government to keep pushing for an
agreement with Brussels to save not only our industry but also the
economy."
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