THE Scottish Retail Consortium (SRC) has warned that retailers would take a massive hit should the UK exit the European Union without some kind of deal.
SRC head of policy Ewan MacDonald-Russell warned that the reality of no deal Brexit would almost certainly mean disruption to supply chains and could impact on the quality, and variety of products on offer to consumers.
MacDonald-Russell said: “The retail industry, and our consumers, will be severely hit if the UK and EU can’t come to an agreement.
“In a no deal scenario, the combination of increased tariffs, the burden of non-tariff barriers, and likely depreciation of the pound, means retailers will face significant cost pressures.
“Given the fierce competition, and tight margins in retail, it is likely some of these price rises will have to be passed on to consumers.
“Furthermore, businesses are already suffering from the uncertainty of what trading conditions will be like after a no deal Brexit – there are clothes and other goods already in transit for which businesses have no clue as to the tariffs they will have to pay on them.”
MacDonald-Russell’s comments coincided with the release of a UK Government impact assessment on a no deal Brexit.
The report warned that the UK economy could be more than five per cent smaller over a 15 year period in the event of a no deal departure, and that there could be issues around the availability of goods. It found: “One of the most visible ways in which the UK would be affected by delays in goods crossing the Channel is our food supply, 30% of which comes from the EU.”
