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Logistics UK chief warns of inflation risk in the event of a No-Deal Brexit
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 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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In brief
OPERATION BROCK CONSULTATION RESPONSE
Logistics UK has broadly welcomed the government’s Operation Brock consultation response, saying that it offers some reassurance for logistics businesses that contingency plans will be in place to enable them to deal with any disruption to the supply chain from 1 January 2021 onwards.
However, the business group cautions that the plans still miss much of the detail operators will need to plan effectively.
https://logistics.org.uk/media/press-releases/2020/october-2020/logistics-uk-statement-on-response-on-operation-br
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