Britain’s luxury goods industry on Monday sounded the alarm over the UK crashing out of the EU without a deal, warning £6.8 billion of exports could be lost every year.
Trade association Walpole, which counts high-end retailers Alexander McQueen, Boodles and Burberry as members, cautioned MPs ahead of them voting on Theresa May’s latest Brexit deal.
New data from consultancy Frontier Economics, commissioned by Walpole, calculates that in the event of a no-deal exit, up to 20% of the current value of UK luxury exports could be at risk because of barriers to market access.
The study said there could be a reduction of around £6 billion per year in exports to the EU, and £800 million per year in exports to Asia Pacific.
Exporters could suffer from higher costs, changes to tariffs and non-tariff measures, and delays at borders hitting getting products out of Britain. Walpole’s chief executive Helen Brocklebank stressed that the industry is thriving with 49% sales growth from UK luxury brands in the four years to 2017.
But she added: “British luxury businesses are committed to staying in Britain, but we are losing patience with the government taking us to the knife edge of no-deal. We urge the government categorically to rule out a no-deal exit”.
London perfumes firm Ormonde Jayne’s boss Linda Pilkington said: “If Ormonde Jayne was weighed down with paperwork and bureaucracy it would impact us on many levels. Our turnover and profitability would suffer in the short term.”
Michael Ward, managing director of Harrods and chairman of Walpole said: “Modern luxury is a true British success story; driving domestic employment, boosting tourism figures and showcasing the strength of our soft power on the world stage. We can now clearly see the devastating impact of a No Deal Brexit on the British luxury industry. The government must categorically take No Deal off the table to prevent further damage to this important sector, as well as end the uncertainty which continues to stifle businesses across the UK.”
