FT: The Hard Numbers Of Brexit
June 21, 2018
In the Financial Times’s story, titled “Barnier talks tough on security,” Oliver Wyman Partner Duncan Brewer discussed the costs of a “no deal” Brexit to UK households.
The costs, which could amount to £1,000 a year, with the impact disproportionately felt by poorer households, are part of the findings in our latest research on Brexit. The article highlights that whatever deal is struck with Brussels, UK household spending will rise and consumer businesses’ profitability will fall after Brexit. Under a “no deal” Brexit scenario, the overall cost to households would be £27bn a year, or nearly £1,000 per household.
“In a scenario where the UK reverted to WTO most-favoured-nation import tariffs, we expect the price of a typical weekly grocery shop to go up by £5.50, a family meal for four at a high street restaurant chain to increase by £9, and a pair of trainers to cost £6.75 more,” said Duncan Brewer, author of the research.
Our report “Costs Up, Prices Up: Brexit’s Impact on Consumer Businesses and Their Customers,” to be published early July, 2018, quantifies how costs from tariffs, red tape (non-tariff barriers), and labour flow into the supply chain and lower profits, even when companies take mitigating actions like putting up prices.
Read the full article here and discover more from of our Brexit insights here.