Yahoo Finance No-deal Brexit 'would see beer prices up and cost of eating out rise'
Beer, pub food and the cost of eating out at restaurants is likely to climb significantly should the UK fail to secure a Brexit deal.
A group representing thousands of businesses has warned customers will be hit in the pocket as costs incurred through a “no-deal” scenario are passed on down the chain.
In written evidence to MPs, the Association of Licensed Multiple Retailers (ALMR), said it was vital prime minister Theresa May confirmed the UK was facing no new tariff barriers on trade after Brexit day in March 2019.
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“Ensuring that food and drink can continue to be traded freely is vital to ensure that the cost of living is kept down for consumers, and business costs for our members are avoided in order to safeguard their continuing economic contribution to the UK economy,” it said.
“Any increases in the tariff barriers to trade are likely to negatively affect the operations of many vital UK hospitality providers, whilst also potentially meaning higher costs for consumers, too.”
The ALMR represents nine out 10 businesses involved in the licensed hospitality sector – from village pubs and small coffee shops to nationwide eateries.
Members include JD Wetherspoon, Pizza Express, Greene King, Pizza Express, Wagamama, TGI Fridays, Café Rouge, All Bar One, and Slug & Lettuce.
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Its evidence to the Business, Energy and Industrial Strategy select committee’s inquiry into Brexit and the implications for UK business also said the organisation was “heartened” to see the prime minister’s commitment to a “highly streamlined” border with the EU or a new “partnership” with no customs border.
It added: “We are keen that this is implemented, as the burden of any friction on trade borders would be likely seep through to higher prices for business and consumers.”
The sector employs some 1.6 million people and adds £23 billion to the UK’s GDP annually.
In the last year, it was responsible for creating one in three of all new jobs across the UK.
In total, the broad catering sector sells £86 billion of food and drink annually, about 43% of the total spend on food in the UK.
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The ALMR cautioned that quitting the EU would place a big strain on the industry as there are 150,000 European migrants employed in the sector, nearly one in 8 of all staff.
Changes to citizens’ rights – a major bone of contention in the Brexit talks – or a crackdown on immigration and workers from the EU post-Brexit would have a major impact.
“Whilst we remain committed to the UK workforce, the UK’s withdrawal from the EU presents a real challenge for our sector to fill the required roles,” it said.
