Business group Logistics UK is warning of the potential economic impact which a No Deal Brexit could have on the fortunes of UK PLC. In a letter to the Sunday Times published today (25 October 2020), David Wells, the organisation’s CEO highlights that a No Deal exit pic.twitter.com/D2TFt1ffd3
— Logistics UK (@LogisticsUKNews) October 25, 2020
“Everyday household items we import will become more expensive under World Trade Organisation tariffs,” writes Mr Wells, “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. “The actual cost of moving goods will also increase,” he continues, “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.”
“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.”
The comments from Logistics UK have of course been repeated by other organisations on multiple occasions. To this date, there is little evidence of such letters having a bearing on UK government policy – no matter how grave the warnings are.
Will Logistics UK’s predictions prove to be correct? We may be just a few months away from finding out.