Tuesday, October 17, 2017
How 'No deal' will hit poorest families the hardest
Whilst Tory MPs continue to play their own version of Noel Edmond's game show, 'Deal or No Deal', the Guardian reveals the real consequences of Theresa May walking away from negotiations, and it will be the families on the lowest incomes who will suffer the most.
The paper says that leaving the European Union without a trade deal would likely result in a sharp increase in prices for food and other goods, costing the average UK household £260 and hitting low-income families hardest. A Resolution Foundation report, titled Switching Lanes, says there would significant price rises on a range of household goods if ministers stuck to their fallback plan of resorting to World Trade Organisation tariffs on EU goods in the event of a no-deal outcome:
Imposing tariffs on EU goods after Brexit would lead to an 8% increase in dairy products, a 6% rise in meat and a 5.5% jump in the cars of motor vehicles, the report found. It was published after farmers and the food industry dismissed as “tripe” a claim by the transport secretary, Chris Grayling, that the UK could become self-sufficient in food after Brexit.
The prime minister said on her first day in Downing Street that it was her mission to create an economy that “worked for everyone” including those who were “just about managing”. But the Resolution Foundation and Sussex University study said that hard-pressed families were most at risk from a no-deal outcome because they spend more of their budgets on food, clothing and household goods.
It found that the impact of rising prices would add 1.1% to the cost of living for the poorest 20% of households, against 0.8% for the richest 20%. Inflation is expected by the City to hit a five-year high of 3% when official figures are released on Tuesday.
Tory MPs and Tory Ministers need to understand that leaving the EU without a deal is not a victimless crime.
The paper says that leaving the European Union without a trade deal would likely result in a sharp increase in prices for food and other goods, costing the average UK household £260 and hitting low-income families hardest. A Resolution Foundation report, titled Switching Lanes, says there would significant price rises on a range of household goods if ministers stuck to their fallback plan of resorting to World Trade Organisation tariffs on EU goods in the event of a no-deal outcome:
Imposing tariffs on EU goods after Brexit would lead to an 8% increase in dairy products, a 6% rise in meat and a 5.5% jump in the cars of motor vehicles, the report found. It was published after farmers and the food industry dismissed as “tripe” a claim by the transport secretary, Chris Grayling, that the UK could become self-sufficient in food after Brexit.
The prime minister said on her first day in Downing Street that it was her mission to create an economy that “worked for everyone” including those who were “just about managing”. But the Resolution Foundation and Sussex University study said that hard-pressed families were most at risk from a no-deal outcome because they spend more of their budgets on food, clothing and household goods.
It found that the impact of rising prices would add 1.1% to the cost of living for the poorest 20% of households, against 0.8% for the richest 20%. Inflation is expected by the City to hit a five-year high of 3% when official figures are released on Tuesday.
Tory MPs and Tory Ministers need to understand that leaving the EU without a deal is not a victimless crime.
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Grayling's cocky arrogance that we can feed ourselves is rubbish. If he read his history he would note that in both wars we could not feed our population. in the 2nd war we had rationing and we had to take a vast area of land to produce it. As usual the rich ,him, will not be touched others will be. After the war rationing continued for years. Are food banks going to be on every corner? Will the black market reappear?
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