Retailers warn of price hikes due for no-deal Brexit

The British Retail Consortium (BRC) has warned of a potential for spikes in food prices if no free trade deal is reached with the European Union before the end of the transition period at the end of December with possible tariffs amount to £3.1 billion (€3.41 billion).

They cited the government's tariff schedule published back in May and that comes into effect on January 1. which states that 85% of food imported from the EU will face tariffs of more than 5% if no deal is reached.

Furthermore, food imported from the bloc may see price increases of anywhere between 20 and 57%, depending on the item and where it is imported from.

The consortium announced it has long been pushing for a "zero-tariff, zero- quota" deal between the UK and EU under its "Fair Deal for Consumers Campaign" and warned consumers they can ill afford price hikes for food and beverages.

The main premise of the campaign is ensuring necessities such as food remain both high-quality and affordable for everyone campaigning against anything that could instigate a significant price hike.

Another goal of the campaign is to coordinate with the EU to ensure VAT and tax prices are reasonable.

The BRC warns that all retailers and supermarkets, as well as their customers, will face tariffs. Furthermore, they expect increased physical checks and security at borders, extra paperwork and non-tariff barriers will also lead to significant price spikes.

Andrew Opie, director of food and sustainability at the BRC, said: "There is no time to waste, the UK and EU must hammer out a final arrangement as soon as possible. Coronavirus is already making life hard for consumers, particularly those on lower incomes, and, a no-deal Brexit will have a massive impact on their ability to afford essential goods.

"UK consumers have benefitted greatly from great value, quality, and choice of thanks to our ability to trade tariff-free with the EU. There is now a risk of large tariffs for food we cannot source in the UK."

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