The price of groceries could soar in the event of a no-deal Brexit

Import costs for everyday items could rise by around a third in the event of a no-deal Brexit. This would make the household shopping basket “much more expensive”, a major UK business group has warned.

Red tape

The cost of moving goods could also rise due to import taxes. And restrictions to the number of UK lorries that can enter the EU could put businesses across the country at risk, Logistics UK said.

Logistics UK chief executive David Wells urged the government to keep working towards a deal. He said a no-deal scenario could drive inflation up as a result of the rise in prices for imported goods.

In a letter to the Sunday Times, he said:

Everyday household items we import will become more expensive under World Trade Organisation tariffs, some by 30% or more.

This will make the household shopping basket much more expensive, particularly in the early part of 2021 when we rely on imports for much of our fresh food.

Read on...

Senior cabinet minister Michael Gove has acknowledged that leaving the transition period without a trade deal would cause “some turbulence”.

In his letter, Wells added:

The actual cost of moving goods will also increase, if new vehicles, parts and tyres are also subject to tariffs.

This is more than ‘turbulence’, as suggested by Mr Gove last week, and logistics businesses, operating on 2% margins, cannot afford to take on these costs.

Increased risk

A government spokesperson said:

The Prime Minister has been clear that a negotiated outcome at the end of the transition period remains our preference.

The EU has now agreed to a genuine intensification of negotiations, with talks taking place daily, and both sides recognising that time is extremely short.

At the end of the year we will be outside the single market and the customs union and intensive planning is under way to help ensure that businesses are ready to seize the opportunities that it will bring.

Citing concerns around permits for lorries to access the EU market in the event of a no-deal, Wells said:

The permit quota available to UK operators will fall short by a factor of four, putting businesses at risk right across the country.

We are urging government to keep pressing for a deal with Brussels, to protect not only our industry but the economy as a whole.

We need your help to keep speaking the truth

Every story that you have come to us with; each injustice you have asked us to investigate; every campaign we have fought; each of your unheard voices we amplified; we do this for you. We are making a difference on your behalf.

Our fight is your fight. You’ve supported our collective struggle every time you gave us a like; and every time you shared our work across social media. Now we need you to support us with a monthly donation.

We have published nearly 2,000 articles and over 50 films in 2021. And we want to do this and more in 2022 but we don’t have enough money to go on at this pace. So, if you value our work and want us to continue then please join us and be part of The Canary family.

In return, you get:

* Advert free reading experience
* Quarterly group video call with the Editor-in-Chief
* Behind the scenes monthly e-newsletter
* 20% discount in our shop

Almost all of our spending goes to the people who make The Canary’s content. So your contribution directly supports our writers and enables us to continue to do what we do: speaking truth, powered by you. We have weathered many attempts to shut us down and silence our vital opposition to an increasingly fascist government and right-wing mainstream media.

With your help we can continue:

* Holding political and state power to account
* Advocating for the people the system marginalises
* Being a media outlet that upholds the highest standards
* Campaigning on the issues others won’t
* Putting your lives central to everything we do

We are a drop of truth in an ocean of deceit. But we can’t do this without your support. So please, can you help us continue the fight?

The Canary Support us