Quitting EU could hit UK households by up to 960 pounds a year: report

The report by consulting firm Oliver Wyman focused on five different Brexit scenarios, where the size of the annual economic impact would vary between 245 and 960 pounds depending on whether the UK avoids EU tariffs.

Quitting EU could hit UK households by up to 960 pounds a year: report
The most costly scenario was predicted to be a deal where the UK reverted to World Trade Organisation (WTO) most-favoured nation (MFN) import tariffs, leaving the EU Customs Union and its Single Market. Image source: Reuters
Written By: Reuters
Updated: Fri, Jul 20, 2018
09:10 pm
London, Reuters
RELATED NEWS
Talk of a ''no deal'' Brexit grows as deadline looms Talk of a ''no deal'' Brexit grows as deadline looms
Britain ditches threat to break EU exit treaty: From What is the deal, changes, to what happens - Explained in brief Britain ditches threat to break EU exit treaty: From What is the deal, changes, to what happens - Explained in brief
EU and Britain far apart as key week of Brexit talks begins EU and Britain far apart as key week of Brexit talks begins
European Union, Britain clash over a post-Brexit trade deal European Union, Britain clash over a post-Brexit trade deal

Quitting the EU could leave British households up to 960 pounds ($1,260) worse off each year, according to a report. Households will face higher prices as they absorb costs from labour changes, tariffs, and red tape, it said, whilst consumer businesses could see profits slump by 1-4 percent.

The report by consulting firm Oliver Wyman focused on five different Brexit scenarios, where the size of the annual economic impact would vary between 245 and 960 pounds depending on whether the UK avoids EU tariffs.

The most costly scenario was predicted to be a deal where the UK reverted to World Trade Organisation (WTO) most-favoured nation (MFN) import tariffs, leaving the EU Customs Union and its Single Market.

Consumer prices could be affected further by a devaluation of the pound and the likelihood that free trade deals with non-EU countries would fail adequately to mitigate the impact on households, the report said.

Two months ago, a report by the House of Lords European Union Committee said food prices are likely to rise after Brexit if no trade agreement with the EU is reached, and that there could be shortages of some products.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.