Markets

No-Deal Brexit: Britain to Suffer Food, Fuel and Drug Shortages

  • No-Deal Brexit: Britain to Suffer Food, Fuel and Drug Shortages

A document compiled by the Cabinet Office in the UK and published by the Sunday Times pointed to economic hardship if the United Kingdom leaves the European Union without a transition deal as the new Prime Minister, Boris Johnson, and his team are pushing for come October.

According to the Sunday Times, food shortage and the inability to access daily necessities will lead to high consumer prices as additional 4 percent import tax would have been imposed on all import goods from the European Union.

It explains that fresh food will gradually decrease and lack of it will also hit more complex food production —because of preservatives.

Accordingly, the document compiled under the codename ‘Operation Yellowhammer’ also projected that supermarkets will experience weak sales, with shoppers unable to buy available products.

“It’s not just a question of how much milk we have, but milk as an ingredient like skimmed milk powder, and its use in modern food manufacturing in all its complexities,” a senior food industry source said.

However, Michael Gove, the minister in charge of ‘no-deal Brexit’ preparations, refuted the documents even though it was compiled by Cabinet Office, he said it addressed only worst-case scenario and that planning had been accelerated in the last three weeks.

“It is the case, as everyone knows, that if we do have a no-deal exit there will inevitably be some disruption, some bumps in the road. That’s why we want a deal,” Gove told reporters.

“But it is also the case that the UK government is far more prepared now than it was in the past, and it’s also important for people to recognise that what’s being described in these documents… is emphatically a worst-case scenario,” Gove added.

The Times said around 85 percent of trucks plying the main crossing channel won’t be ready for French customs, saying it will lead to substantial disruption at ports and may last up to three months before traffic flow improved.

A government source, however, blamed the leak on an unnamed former minister who wanted to influence negotiations with the EU.

“This document is from when ministers were blocking what needed to be done to get ready to leave and the funds were not available,” said the source, who declined to be named. “It has been deliberately leaked by a former minister in an attempt to influence discussions with EU leaders.”

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Nigeria Nears 1.5 Million-Barrel OPEC+ Quota as Output Climbs Amid Security Gains

Africa’s largest crude oil producer, Nigeria, oil production is nearing its 1.5 million-barrel-per-day (bpd) quota…

8 minutes ago

Oando Secures Operatorship of Angola’s Block KON 13 in Strategic Expansion Move

Oando PLC, Africa’s leading indigenous energy solutions provider, has secured the operatorship of Block KON…

2 hours ago

Pounds to Naira Black Market Exchange Rate Today, 23rd January 2025

The pounds to naira exchange rate continues to be a critical topic in Nigeria’s financial…

3 hours ago

Dollar to Naira Black Market Exchange Rate Today, 23rd January 2025

The dollar to naira exchange rate continues to be a focal point in Nigeria's financial…

4 hours ago

Transcorp Power Records N305.9bn Revenue, 165% PAT Growth in 2024

Transcorp Power Plc, a Transcorp Group power business, hit significant milestones in financial performance for…

4 hours ago

Discordant Tunes Greet 50% Tariff Hike As Subscribers Threaten To Sue NCC

Nigerians have expressed displeasure over the decision of the Nigerian Communications Commission to increase tariffs…

23 hours ago