Logistics

No-Deal Brexit threatens UK’s supply chain

Leading logistics trade organisations are warning the government and the public about the consequences of a No-Deal Brexit.

According to Logistics UK, a No-Deal Brexit would threaten the UK’s supply chain and put it at great risk.

However, Chancellor Rishi Sunak has said he remains “hopeful” a deal will be negotiated.

Speaking to the BBC’s Andrew Marr, Sunak said: “I think we’re making progress in the talks and I remain hopeful that we can reach resolution.

“I think we’re being entirely reasonable with our requests and have been consistent and transparent through this process about what’s important to us. But we will prosper in any eventuality.”

He added: “In the short-term specifically, and most immediately, it would be preferable to have a deal because it would ease things in the short-term.”

Elizabeth de Jong, the group’s policy director, said: “Neither side would benefit from a No Deal outcome. Both sides should be seeking to avoid tariffs which would make everyday household items we import more expensive, some by up to 30%.

“Without a deal, the cross-Channel logistics sector cannot function. With no agreement currently in place for HGV access to and from the EU, many logistics companies cannot be certain if they can operate next year and cannot plan their work. This puts the country’s entire supply chain at risk.”

She added: “Many deadlines have slipped and been reassessed over the past few months, but time really is now running out if the treaty is to be ratified in time for the New Year.

“Business needs and deserves certainty over the terms in which the economy will operate from 1st January 2021 – this further delay to the talks between the two sides leaves international hauliers and traders in limbo, with little or no time to implement new business processes.”

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