Next tells us that if Brexit means leaving with no deal then it will pass on the benefits of lower or no import tariffs to consumers in the form of lower prices. Of course this will happen for so will everyone else pass on such lower costs to consumers. All of which rather shows that tariffs themselves are a bad idea as they raise costs to consumers. And, thus, obviously enough, the benefits of a no deal Brexit. We get to tax ourselves less for the temerity of buying foreign made goods. Ain’t that great?[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] Retail giant Next has said lower trade tariffs under a no-deal Brexit could save it up to £15 million and allow it to cut prices for shoppers. The chain said, while”seemingly” unlikely, if the Government’s proposed tariffs were put into place it would slash its costs by £12 million to £15 million, allowing “modest” savings to be passed on to customers. [/perfectpullquote]
Don’t forget that all other retailers will also see a proportionate decrease in their costs as well. The obvious effect of which is that competition between them will mean those reductions are passed on to consumers:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Next will pass on £15m no-deal Brexit tariff savings to customers[/perfectpullquote]
If it were only Next seeing that cost reduction then it would simply bolster their margins. Given that it’s everyone it will be us out here who benefit.
Oh, and no, we won’t be losing the tax revenue from tariffs by cutting them either. Currently tariff revenue is passed along to the EU and is part of what we fork out as members. So, no membership, no passing cash to the EU, we can indeed cut the tariffs as we leave.
No deal Brexit offers the opportunity for us all to become richer as we tax ourselves less. So, that’s what we want, isn’t it? No deal Brexit to make us all richer?