Most Brits Think U.K. Will Leave EU Without a Deal, Report Finds
Most of the British public believes the U.K. will leave the European Union without a deal, with many planning to cut costs on everything from clothes to home extensions, a survey finds.
The KPMG report found 54 percent of respondents thought the chance of Britain leaving the bloc without a deal was now likely. It polled 3,044 adults between Aug. 4 and Aug. 6. If the U.K. doesn’t strike a deal, 70 percent thought prices would rise and a similar number said they would alter their spending.
The U.K. government will publish the first in a series of no-deal Brexit notices on Thursday, advising business and consumers on how to cope should U.K. leaves the EU without an agreement. A second batch will be published in September. They cover everything from financial services to travel.
"I’m not a fan of doom-mongering, but we might just not have tomatoes on the shelf every single day as we did in the past" in the event of no-deal, said Paul Martin, U.K. head of retail at KPMG. "Most consumers in this country, they just expect these are automatic things."
Between 43 and 48 percent of survey participants said they’d probably cut spending across the board, including everything from monthly bills to luxury items, if a deal wasn’t reached.
They’d also avoid investment decisions such as buying a new house or car. Most people thought the most severe negative economic impact in such a scenario would be felt in the week after the U.K. leaves, with the impact unfolding over a decade.
Women and those under 35 were most likely to cut back on expenses, the survey found.
©2018 Bloomberg L.P.