Shopping bills set to soar if no Brexit deal
Annual shopping bills could soar by nearly £1000 if the UK walks away from Brexit talks without a trade deal.
The National Institute Economic Review study said meat, vegetables, dairy products, clothing and footwear would all be hit with the steepest increases under a “no-deal” scenario.
The revelation comes as UK consumers were last week hit with the first interest rate rise in a decade.
A “no-deal” scenario would see the UK forced to apply new tariffs on European imports as it falls back to using World Trade Organisation (WTO) rules.
WTO tariffs are highest for fresh food, reaching 45% for dairy products and 37% for meat.
“The overall increase in price in the affected goods is estimated to be 2.7% and this translates into an increase in the overall cost of living of 0.81.1% [or £930] for a typical family, with the unemployed and families, those with children and pensioners hit hardest,” conclude the study.
They add: “This may seem a small number but, in a country in which the real incomes of ordinary families have been stagnant for several years, a loss of this order would have a significant effect on welfare.”
Meanwhile, business group CBI is warning 60% of British firms will trigger contingency plans, such as moving HQ to an EU nation, by next March if Theresa May has not secured a transition deal by then.