UK Shoppers to face higher costs without ‘pragmatic’ EU trade deal, warns BRC

The British Retail Consortium (BRC) has warned that without a “pragmatic” post-Brexit trade deal with the EU, UK customers would face higher costs and reduced availability of goods.

In its newly-launched ‘A Fair Deal for Consumers: EU Trade Roadmap’ report, the BRC outlines priorities for the country’s retail industry ahead of the government’s trade deal negotiations with the EU set to begin next month.

The priorities include “pragmatic solutions” on future compliance and regulatory checks that will go into effect in January 2021. “Without these, consumers will face higher costs and reduced availability of goods,” the BRC warned.

While the report makes clear that there is no possibility of a return to frictionless trade under the government’s red lines, it proposes key mitigations that could reduce the impact on consumers and retailers.

They include a zero-tariff trade deal; cooperation with the EU to minimise trade friction; coordination on VAT, customs and excise procedures; advance information on new checks and paperwork; and timely construction of necessary infrastructure at UK ports.

While up until now the UK has been able to trade seamlessly within the EU, the BRC has warned that without “pragmatic solutions and agreements” companies may be required to produce VAT and excise documents, freight documents, health and veterinary paperwork, export health certificates, Exit and Entry summary declarations, and Safety and Security permits.

The BRC said staff would need to be hired and trained to carry out these checks, IT systems would have to be adapted and tested, and holding facilities for lorries - particularly at Dover and Folkestone in the South of the UK - would need to be built.

Helen Dickinson, chief executive of the British Retail Consortium, said in a statement: “The issue is simple - higher tariffs and extensive checks will harm consumers, retailers, and the UK economy. The Government must set about to negotiate a zero-tariff agreement that minimises checks and red tape otherwise it will be consumers who suffer as a result.

“The introduction of excessive or avoidable checks would mean businesses face a mountain of paperwork to be filled out by an army of newly trained staff, coupled with exhaustive checks on thousands of lorries every day. And the result for consumers would be higher costs and reduced availability on the shelves.

“Meanwhile, new IT systems will need to be created and tested before 1 January 2021. Border Control Posts must be built, with people hired and trained to run. Unless these are ready and tested. The Government has no time to lose.”

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