Source: pxhere (pxhere.com/en/photo/714697)
A new analysis has been published evaluating the effects of Brexit.
The Government and EU have concluded a Withdrawal Agreement on how the UK should leave the EU, which is due formally to take place on 29th March 2019. This agreement must first be ratified by the UK Parliament, which has been debating it late last year and early this year. Amidst the Brexit debate, the Government has been making preparations in the event of its deal is not agreed – known as ‘No Deal’. The BBC has a good explanation that breaks it all down here (www.bbc.co.uk/news/uk-44904619).
So how might such a No Deal affect our constituency of Leicester East? The majority of our trade is with the EU, and this will become subject to World Trade Organisation rules. This includes tariffs, and other regulations known as non-tariff barriers.
According to analysis by the British Retail Consortium, the trade body representing UK retailers, the added burden both of tariffs and non-tariff barriers will make it more expensive to bring in goods – including food. As a result, prices for these goods could rise by (on average) 22%, while non-tariff barriers could cause price rises of 29% (on average).
For Leicester East, the BRC has suggested that individuals may spend between 8.3-32.4% more on their food each week – about £3.90-15.21 more. As a percentage of weekly wages this translates to individuals spending between1.2-4.8% more on food.