Logistics UK has warned the government of the potential economic impact which a no deal Brexit could have on the fortunes of UK PLC.
In a letter to the Sunday Times published on the 25 October 2020, David Wells, the organisation’s CEO highlighted that a no-deal exit from the EU could have a significant effect on the price of all imported goods and could drive inflation up as a result.
Wells also stated, “the actual cost of moving goods will increase if new vehicles, parts, and tyres are also subject to tariffs, this is more than ‘turbulence’, as suggested by Micheal Gove last week, and logistics businesses, operating on 2% margins, cannot afford to take on these costs.”
He revealed that another concern for logistics operators will be “obtaining access to the EU market if the talks remain unresolved, as, without a deal.”
UK logistics operators will also be restricted by the number of lorry access permits available to enter the EU.
Wells said: “The permit quota available to UK operators will fall short by a factor of four, putting businesses at risk right across the country.
We are urging government to keep pressing for a deal with Brussels, to protect not only our industry but the economy as a whole.”