0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

No Deal Brexit Could Cost UK’s Food Retailers £9.3bn, Says Barclays

Written by: Keith Tully

Reviewed: Thursday 27th September, 2018

UK food retailers affected by brexit

British food retailers could face costs of close to £9.3 billion if there is no formal Brexit deal agreed between the UK and the EU in the coming months.

That warning has been issued by the banking group Barclays, which is convinced that a no-deal Brexit scenario could be hugely damaging for businesses across the UK’s food retail sector and within its associated supply chains.

The prospect of tariffs being added to food and drink products coming into the UK from the EU is high on the list of concerns for Barclays and for the companies that stand to be affected by them.

Barclays estimates that a no-deal Brexit could push the average tariff level up to 27 per cent across the food and drink supply chain.

The bank has also said it would expect to see every consignment of goods coming in from the EU required to make a customs declaration at a cost of no less than £50.

An estimated £48 billion worth of food and drink was imported into the UK last year, which accounts for around 40 per cent of the nationwide market as a whole.

Of these imports, around 71 per cent are believed to have originated from EU locations and entered the UK without any customs duties or trade costs being incurred or applied in the process.

There are hopes that the UK and the EU will agree a post-Brexit free trade deal which limits the costs to food and drink importers but Barclays is convinced that a no-deal situation as of April next year could well result in “significantly higher costs for retailers and consumers”.

“The food and drink industry is one of the country’s most important sectors, employing millions of people across the UK,” said Ian Gilmartin, head of retail at Barclays Corporate Banking.

“Some products would avoid tariffs, even in a no-deal scenario, but for most goods the effect of an increased tariff burden would be extremely damaging, and cheaper goods would be the hardest hit.”

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

55
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners