Brexit barriers could cost households £1k each, report argues
Households could be left up to £1,000 a year worse off because of Brexit trade barriers, a report will suggest.
Global consultancy firm Oliver Wyman will say that under the most negative scenario of high import tariffs and high regulatory barriers the cost to the economy could total £27bn.
Business profits for supermarkets and restaurants could be wiped out because of supply chain disruption.
A rise in costs would likely be passed on to consumers, the report will argue.
The analysis, to be published next week and seen by the BBC, will make clear that even under the most favourable scenario of no tariffs and few regulatory barriers, there are likely to be increased “red tape” costs.
It will suggest that increased paperwork and delays for customs checks are likely to increase household costs by 1% a year, or £250 per household. The total cost to the economy would be £6.8bn.
Economists who support Brexit said that reports of significant economic costs post-Brexit were “alarmist” and that by focusing on the domestic economy, Britain outside the European Union could flourish.
