New research suggests that Britons have spent £4 bn stockpiling goods in preparation for a possible no-deal Brexit. The survey by finance provider Premium Credit reveals one in five people are already hoarding food, drinks and medicine, spending an £380 each. They also found that about 800,000 people have spent more than £1,000 building up stockpiles before the October 31 Brexit deadline.
Another similar research in the weeks leading up to the original deadline for the UK to leave the EU found that about 17 per cent of the population had spent some money building up supplies, with a total stockpile calculated at £4.6 bn ahead of the March 31 deadline. Seventy four per cent of those surveyed said they had bought extra food, 50 per cent bought medicines and 46 per cent bought drinks.
According to the report, Brexit-related stockpiling is also hitting cash flow, with companies taking out credit to cover the cost of insurance and other fixed costs. Adam Morghem of Premium Credit, said "the level of stockpiling by British businesses and households is well documented, but there has been little focus on the impact this has had on cash flow, which has been quite negative."
He added, "interestingly, over the past three months we have seen an increase in clients looking to use premium finance to pay for their insurance, and we believe a key factor behind this is the impact of stockpiling on cash flows, forcing more businesses and households to spread the cost of their insurance. Businesses should also check with their brokers to make sure their stockpiled goods are properly insured."
Even the elite and rich are importing more luxury cars ahead of the Brexit deadline in order to avoid tariffs that might be introduced following a hard Brexit. More than 3,800 luxury cars were imported in the past year, a 16 per cent increase on the previous 12 months, according to the law firm Boodle Hatfield.
Fred Clark of the firm said, "A no-deal Brexit could mean luxury car imports become 32 per cent more expensive overnight. There is a possibility that moving cars into and out of the UK will become more difficult if the UK leaves the EU with no deal. More individuals are now taking that risk seriously and bringing vehicles into the UK from the EU."