Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

UK households face £1,000 Brexit bill

3 Comments
UK households face £1,000 Brexit bill

UK households are likely to face the loss of £1,000 a year because of steeper trading costs with European partners, management consultant Oliver Wyman has warned.

Even if the UK is able to agree terms of a trade deal with the EU the country is likely to face a bill of £6.8 billion due to higher border costs and related red tape, it said in a report seen by the BBC. If no deal is agreed the immediate costs would likely spiral to £27 billion, it added.

‘While the outcomes of Brexit remain unclear, our analysis shows that any scenario will increase costs for UK households,’ said Oliver Wyman partner Duncan Brewer.

‘The only question is by how much, which will depend on what deal is negotiated.

‘While businesses will do all they can to absorb rising costs, we expect they will be forced to gradually put up prices for shoppers. If they don't, profits could vanish.’

Cross border friction and higher friction across supply chains would likely add 2.3% to a basket of household goods, the report estimated. For a supermarket booking annual revenue of £10 billion that would already tightly constrained profits being cut by a third.

Longer term, the house suggested that trade costs would add a further 1% to household bills or an average of £250 per household.  

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Young: the buck stops with me on Asia recovery

Hugh Young: the buck stops with me on Asia recovery

The Veteran Asia Pacific fund manager discusses how he is going to improve the performance of Aberdeen Standard Asia Focus and the other investment trusts run by his team.

Play Tim Steer: fund managers will have to get 'stuck in'

Tim Steer: fund managers will have to get 'stuck in'

The second part of our film with former Artemis and New Star fund manager Tim Steer looks at how his profession has evolved over the past two decades.

2 Comments Play Tim Steer: how to spot a stock disaster coming

Tim Steer: how to spot a stock disaster coming

The former Citywire AAA-rated fund manager has written a book on 22 stock disasters and how forensic examination of annual reports could have spotted them coming.

Read More
Your Business: Cover Star Club

Profile: how a private office combined Lord North Street and C Hoare veterans

Profile: how a private office combined Lord North Street and C Hoare veterans

Quite different roads took Koerling and McArdle to Owl, but this diversity of background and experience is designed to be at the very heart of the business.

Wealth Manager on Twitter