‘No-deal’ Brexit stockpiling raise costs for manufacturers

The Food and Drink Federation’s (FDF) latest business confidence reveals that over a third (38%) of food and drink manufacturers surveyed are reporting an increase in costs as a result of stockpiling ahead of a possible ‘no-deal’ Brexit.

With less than five months to go until the UK is scheduled to leave the European Union (EU), FDF says its quarterly surveys have shown a significant decline in business confidence among food and drink manufacturers this year. Economic uncertainty has seen net confidence among food and drink manufacturers decrease by 21 percentage points when comparing results reported in Q1 with those reported in Q3.

When looking ahead to 2019, two thirds of businesses FDF spoke to identified future tariff implications as a risk to their business. Just under 60 per cent of businesses surveyed thought business investment across the overall UK economy would fall in 2019, while more than 96 per cent expect to see rising input prices.

“These results tell us just how seriously the food and drink industry, the UK’s largest manufacturing sector, takes a ‘no-deal’ Brexit. It is a grisly prospect to which we edge closer every passing day,” saysIan Wright CBE, FDF chief executive.