Less choice and higher prices from new import checks says business owners

Price of school shoes set to rise due to cost of post-Brexit checks

The cross-party, cross-business UK Trade and Business Commission today heard that post-Brexit import checks are resulting in less choice and higher prices for UK consumers. 

Business leaders told commissioners of rising cost prices on items such as children’s school shoes and bottles of wine. Tanya Marriott, Owner of Solelution, explained how shoes at cost price on average are going up between £5-£10 for the next Autumn/Winter season, which will mean a rough increase of £10-£20 for consumers at retail. The managing director of Daniel Lambert wines explained that on average, cost prices are already up by 20p-40p on wine, working out at roughly £1-£1.10 extra per bottle for the consumer. 

Commissioners were also told that part of the problem is profiteering from a “cartel” of freight companies charging unjustified additional duties on freight. Describing how many are “hellbent” on these extra charges, witnesses called on HMRC to investigate why these  unnecessary costs were being added. They further explained that HMRC officials have expressed their anger at the government over post-Brexit policies.

Their evidence comes in the same week that the Chancellor of the Exchequer confessed that Brexit could be to blame after the new research from the Office of Budget Responsibility forecast that UK trade has taken a 15% hit because of the UK's withdrawal from the EU. This week the government also revealed they are considering delaying the introduction of the next phase of import checks due to fears they will increase costs for consumers.

Daniel Lambert, Managing Director of Daniel Lambert wines, who gave evidence at the session, said 

“The government is telling us everything wonderful about Brexit and we have all this freedom, the reality is that we’re all drowning in paperwork, paying extra costs for the privilege and the consumer is being left blissfully unaware.”

“Choice is going to be reduced dramatically in the UK market.”

Tanya Marriott, Owner of SoleLution, said

“It’s a huge inflationary pressure and part of that is because duty is being charged on freight in the UK, that doesn’t happen in the US, it doesn’t happen in Canada.” 

Maurice Greig, Greig and Greig partnership, said

“The freight forwarders just love to slap duty on everything, and then it’s up to the receiver to fight the cause.”

“The government should be investigating why these charges are being slapped on, because the freight forwarders are acting on behalf of HMRC to collect the tax… HMRC should actually be investigating why these complaints are being raised and nothing being done about it.”

Aodhán Connolly, Director at Northern Ireland Retail Consortium and UK Trade and Business Commissioner who chaired the first half of the session, said 

“During a cost of living crisis new barriers to trade will raise costs for businesses who cannot afford to absorb them which means prices for households will inevitably rise, putting more pressure on budgets. 

“Ministers need to listen to business owners who were unanimous in their recommendation that the government must simplify matters between the EU and UK for the good of business and households alike.”