How will a no deal Brexit affect food and drink businesses?

If the UK leaves the EU without a deal then there will be significant implications for the movement of food products between the UK and the EU. In addition to requirements for inspection for certain animal products and the need for customs documentation, there will also be new duty costs.

Some food and drink products moving from the UK into the EU after a no deal Brexit will be subject to significant customs duty costs, as will several food products moving into the UK from the EU. This is likely to have the effect of making some food products more expensive in the UK, and will also make UK produced food more expensive in the EU and therefore make these products less competitive.

The delays caused by increased requirements for documentation and inspections at the border will also cause delays at the ports which will impact on the shelf life of perishable/chilled products in particular.

In future, if a free trade agreement is reached between the UK and the EU the duty costs and potentially also the inspection requirement would be removed.

For more advice on how Brexit could affect your business, contact Wendy Andrews.

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