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By
Fibre2Fashion
Published
Jul 1, 2016
Reading time
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British retail wants government to move quickly post Brexit

By
Fibre2Fashion
Published
Jul 1, 2016

The British Retail Consortium (BRC) has said that following the Brexit vote, the Government must move quickly to explain the process of disengagement from the EU.



“Without clarity, retailers, other businesses and hence the economy will suffer from a prolonged period of uncertainty,” it said in a statement.

“We are already seeing the commencement of a period of considerable volatility as financial markets react to any emerging information that might indicate how the new relationship to the EU might be shaped. Retailers should be prepared for the possibility of significant swings, particularly in the exchange rate and consumer confidence,” the BRC warned.

BRC CEO, Helen Dickinson, said: "Keeping the cost of goods down for consumers and providing certainty for businesses must be at the heart of the Government's plans for life outside of the EU."

In its exit negotiations the Government should aim to ensure that the trade benefits of the Single Market (i.e. the absence of customs duties) are replicated in the UK's new relationship with the EU, the BRC said.

Another trade body, the Creative Industries Federation has pledged to play a positive role in safeguarding the future of the UK’s arts, creative industries and cultural education and their significant contribution to the economy in light of the decision to leave the European Union.
John Kampfner, Chief Executive, said: “As the UK creates a new identity and a new position on the world stage, our arts and creative industries - the fastest growing sector in the economy - will play an important role.

“It will be vital for all sides to work together to ensure that the interests of our sector on issues including access to funding and talent are safeguarded as the UK forges its new relationship with Europe. The importance of British culture in representing our country to the world will be greater than ever.”

After a campaign that highlighted deep social, geographic and economic divisions, the role the arts can play will be significant. “Within the UK, we will play our part in helping to bridge divides within and between the nations and regions of the country.”

The Federation, whose members' poll showed an overwhelming vote in favour of remaining with the EU, plans to hold a series of events to engage the creative community on charting a way ahead, it said in a statement.

A weaker British Pound means that British companies will spend more on production costs in other countries, and will have to pass on those expenses to the shoppers by raising prices; if it’s harder for other EU citizens to visit England, it may also cut down on shopping by European tourists. Not surprisingly, 90 per cent of the members of the British Fashion Council wanted to stay in the EU.

But a weak Pound may boost British fashion label Burberry. While the plummeting pound is bad for Brits, it’s nice for foreigners who’d like to visit England. It means your trip to London will be a lot cheaper. So Burberry’s eventual higher costs may be offset by American tourists buying up Burberry threads in England.

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