Britain’s retail sector could be hit by a 20% rise in costs after Brexit, according to a new Government document leaked to Sky News.
The Government’s own analysis of the impact of Brexit on every industrial sector of the economy reveals the estimated added costs to UK companies.
The added costs are due to non-tariff barriers which will come into place once the UK leaves the EU.
These will restrict imports or exports of jewellery and other fashion items and represent new extra customs checks, added paperwork, and diverging regulatory standards.
Non-tariff barriers include quotas, embargoes, sanctions, levies and other restrictions.
The analysis was prepared by Government economists for Cabinet ministers, ahead of their discussions on future trading relationships with the EU, which were held yesterday.
The cost increases could have devastating effects on the jewellery retailers, which are already facing an uncertain future following a wave of price hikes from suppliers in the wake of the falling pound.