UK luxury brands prepare for hard Brexit

With just 78 days left until Brexit, the fateful day the UK will leave the European Union, the hard reality for British retailers and brands is that they must prepare for the worst and hope for the best.

Walpole, the official sector body that promotes, protects and develops British luxury worldwide, recommends that the “prudent, pragmatic course of action is to escalate no-deal planning as a matter of urgency.”

Understand the new export requirements

Given the export focus of the British luxury sector and the integrated European supply chains, “we would ask that all Walpole brands check immediately that they are registered both for EORI (Economic Operator Registration and Identification) in order to be able to trade, and for TSP (Transitional Simplified Procedures) in order to facilitate EU imports.”

The Confederation of British Industry (CBI) has prepared a report with 200 recommendations to reduce the harm of no-deal – practical steps the UK, EU and businesses can take to reduce its worst effects – based on the CBI’s comprehensive study of existing plans laid out by the UK government, the European Commission, member states and firms.

The detailed analysis includes clear, practical information on movement of goods; regulated goods; tariffs and taxation; Northern Ireland; regulated services; people; data; competition policy; global relations and EU programmes.

According to Walpole, the British luxury sector has grown 49 percent t in the last four years, employing nearly 160,000 people and exporting 80 percent of what is produced. Valued at over 48 billion pounds and contributing more than 7 billion pounds to the UK exchequer, a no-deal Brexit will result in a loss of 20 percent of British luxury’s exports – a value of 8 billion pounds.

Michael Ward, Walpole’s Chairman, said in a statement: “the future belongs to the optimists: prudent optimists hope for the best, but ensure they are prepared in every way they can for the turbulence ahead. Walpole will do everything in its power to help.”

The CBI has warned the government that neither the UK nor the EU is ready for a no-deal Brexit on 31 October. “While the UK’s preparations to date are welcome, the unprecedented nature of Brexit means some aspects cannot be mitigated,” said the CBI.

UK luxury brands prepare for hard Brexit

Article source: Walpole, BBC, CBI

Photo credit: Pixabay.com

 

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