UK spends £4bn stockpiling goods in no-deal Brexit preparations
The UK has spent £4b.0n stockpiling goods including food and medicine in preparation for a possible no-deal Brexit, latest research revealed on Monday
A new survey by Premium Credit found that one in five people have a food, drinks and medicine hoard worth £380.
The survey also found that about 800,000 people had spent more than £1,000 building up stockpiles before the 31 October Brexit deadline after Prime Minister Boris Johnson promised an exit regardless of the state of deal negotiations.
However, the amount spent so far is £600m less than in the build-up to the original March 31 deadline, the survey stated.
Of the people who were stockpiling, 74% of those surveyed said they had bought extra food, 50% had purchased medicines and 46% had bought drinks.
The stockpiling was also affecting firms' cash-flow, said the report, with companies taking out credit to cover the costs of the extra goods.
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.
“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.”