Logistics UK chief warns of inflation risk in the event of a No-Deal Brexit

In a letter to the Sunday Times published on 25 October 2020, David Wells, Logistics UK’s Chief Executive, stresses that a no-deal exit from the EU could have a significant effect on the price of all imported goods and could drive inflation up as a result.

“Everyday household items we import will become more expensive under World Trade Organisation tariffs,” Wells wrote, “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 continued, “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.”

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Published On: 29/10/2020 15:41:06

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