• The cost of moving goods will increase
• The UK operator permit quota will fall short by a factor of four
• Logistics businesses operating on 2% margins cannot afford extra costs
London, UK: Logistics UK warns a no-deal Brexit could have a severe detrimental effect on the UK economy.
David Wells, chief executive, Logistics UK said in a letter to the Sunday Times today, that a no-deal exit from the EU will affect the price of all imported goods and could drive inflation.
“Everyday household items we import will become more expensive under World Trade Organisation tariffs, 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 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.”
Another concern for logistics operators will be obtaining access to the EU market if the talks remain unresolved, as without a deal UK logistics operators will also be restricted by the number of lorry access permits available to enter the EU.
“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,” he said.
Logistics UK (formerly FTA) represents UK logistics businesses
logistics.org.uk
