FAILURE to reach a deal on trade or transition arrangements after Brexit could see the price of a British fry-up jump, a new analysis has revealed.
A “no deal” situation would see UK-EU trade revert to World Trade Organisation (WTO) rules, which could see the prices of imported food soar by four times the current rate of inflation with higher tariffs, according to accountants KPMG.
The fried breakfast beloved of millions could be 12.8 per cent more expensive if tariffs on trade with the EU increase dramatically. There are currently no tariffs on UK-EU trade.
The total cost of a typical family-sized shopping list for the key ingredients for a fry-up would increase from £23.59 to £26.61, KPMG estimated.
Prices for orange juice and olive oil, for which the UK relies on imports, are vulnerable to increased tariffs of as much as 30 per cent under WTO rules. Meanwhile imported sausages and baked beans could face tariffs of around 20 per cent, and even Danish bacon could face a nine per cent tariff hike.
However, the more British the full English (or Ulster fry), the lower the vulnerability: home-produced scrambled eggs on toast would not be affected by any tariff increases.
Bob Jones, Brexit customs and indirect tax lead at KPMG UK, said: “WTO tariffs could have a significant impact on both consumers and retailers alike – totting up consumer price tags and further squeezing retail margins.”