UK households could be lose up to £1,000 a year because of Brexit trade barriers, a report by the Oliver Wyman consultancy suggests, which added that Britain’s March 2019 withdrawal from the EU could cost the UK economy €31 billion (£27 billion), BBC reports.
Supermarket chains and the retail sector are expected to suffer from red tape costs that would in the best-case scenario could exceed €7 billion, leading to a 2.3% rise in prices and adding a minimum of 1% to the cost of shopping for each household if the UK secures a deal that introduces no tariffs. Under the same scenario supermarket chains could see their profits reduced by a third.
The Economists for Brexit group, however, suggest that all price rises are likely to be short-term and could give the UK greater price flexibility given the ability to conclude its own trade deals outside of Europe.
On June 19, British Prime Minister Theresa May announced a £20 billion boost for the National Health Service (NHS), which she claims will be funded by savings from EU contributions. The boost to NHS spending will begin even if payments to the bloc continue, according to May.
“There will be those payments that we’ll be making over a period of time to as part of our withdrawal from the EU but there will still be more money coming back from the EU, and our priority for that is the NHS,” she said.