A no-deal Brexit could see import costs for some everyday items rise by nearly a third, making them “much more expensive,” one business group said.
The cost of moving goods could also rise due to tariffs and inflation could rise, Logistics UK added.
In a letter to the Sunday Times, David Wells, the group’s chief executive, urged the prime minister to work toward a deal.
A government spokesperson said that a negotiated outcome before December 31 “remains our preference.”
Ministers have warned companies to “prepare” for change at the end of the transition period.
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In the letter, Wells said imported daily household items will be more expensive under World Trade Organization tariffs, some by 30% or more.
“This will make the household shopping basket much more expensive, particularly in early 2021 when we depend on imports for much of our fresh food,” he added.
The UK Director of Logistics, formerly known as the Freight Transport Association, and representing carriers, warned that restrictions on the number of truck access permits available to enter the EU could put businesses across the globe at risk. country.
“The permitting quota available to UK operators will be reduced by a factor of four, putting companies across the country at risk,” he said.
“We urge the government to continue pushing for an agreement with Brussels, to protect not only our industry, but the economy as a whole.”
Negotiations resumed after a week-long confrontation, and the British side agreed to continue talks after EU chief negotiator Michel Barnier said “commitments from both sides” were needed.
At a summit in Brussels earlier this month, EU leaders called on the UK to “make the necessary moves” towards a deal.
Cabinet Office Minister Michael Gove has acknowledged that leaving the EU without a trade deal would cause “some turmoil”.
But Wells said the potential impact on logistics companies would be “more than ‘turmoil.’
In response to the letter, a government spokesman said: “The prime minister has made it clear that a negotiated outcome at the end of the transition period remains our preference.”
There will be an “intensification of the negotiations,” having dialogued daily, the spokesperson added.
“By the end of the year we will be out of the single market and customs union and intensive planning is underway to help ensure that companies are prepared to take advantage of the opportunities it will bring.”
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