FT: Lack of EU deal would cost UK families £1,000 a year
Jun 18, 2018
Additional red tape on UK imports at the UK border would add £250–350 a year to household bills, regardless of the tariffs agreed in Brexit negotiations.
“Cost increases on essentials like food and drink could create difficulties for many people in the UK, but the price changes won’t happen overnight,” said Duncan Brewer, Retail and Consumer Partner in Oliver Wyman’s London office and co-author of the report. “However, consumers’ pockets are not limitless and they will cut back on discretionary purchases like holidays and eating out, putting pressure on businesses like restaurants and travel agencies.”
The new research, to be published early July, 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.