‘No deal’ Brexit could add £930 a year
New research has proposed UK households will face extra costs up to £930 a year, if Britain fails to make a trade deal with the European Union.
Meat, vegetables, dairy products, clothing and footwear could be subject to a large rise in consumer price, according to a study published in the authoritative National Institute Economic Review.
Stalled negotiations resume next week in Brussels, but proposed increased tariffs on imported European goods could lead to an impossible inflationary surge.
The survey predicts this would impact the financially vulnerable and unemployed most, with some struggling to pay for basic household essentials. It is predicted that for the 2 million worst-affected households, their weekly expenditure could rise by 2-4.7 per cent.
The Brexit secretary David Davis warned that government needed to “seriously consider” pursuing the no deal option, and Brexit enthusiasts suggest combating rising import prices by growing more food at home and striking new trade deals with countries such as the US, Australia and New Zealand.
Government are not convinced that this is necessary quite yet, and efforts are still being made to reach a deal with the European Union. Next week, the government is expected to publish new trade legislation to transition existing EU trade deals into Britain. This proposal will also introduce new measures such as setting up a trade remedies body to handle trade disputes.
“In order to minimise disruption to trade, the government has announced it will replicate its existing commitments as set out in the EU’s schedules of commitments and submit these ahead of leaving the EU,” government officials reported.