Hoarding Brits for no-deal Brexit

The British have spent £4 billion on stockpiling in preparation for a possible no-deal Brexit, according to new research.

One in five people are already hoarding food, drinks and medicines, and, according to a study by the financier Premium Credit, is spending £380 per person extra. The study found that approximately 800,000 people spent more than £1,000 building up stocks before the Brexit deadline of October 31.

Stock building

If the UK does not leave with an agreement, companies are predicting that there will be supply problems in the short term which, according to the government, will be remedied.

Similar research in the weeks leading up to the UK's original deadline for leaving the EU has shown that about 17% of the population has spent some money building up stocks, with total stock expenditure estimated at £4.6 billion before the 31 March deadline.

Of those stockpiling, 74% said they had bought extra food, 50% bought medicines and 46% bought drinks.

Cash flow

According to the report, Brexit-related stockpiling also affects cash flow, where companies take out credit to cover the costs of insurance and other fixed costs.

Adam Morghem of Premium Credit said: "The level of stockpiling by British companies and households is well documented, but little attention has been paid to its impact on cash flow, which has been quite negative.

Businesses

"Interestingly, over the past three months we have seen an increase in the number of customers wanting to use premium financing to pay for their insurance, and we believe that an important factor behind this is the effect of stockpiling on cash flows, forcing more companies and households to spread the cost of their insurance.

"Companies should also check with their brokers that their stocks are properly insured.

Last week, Pets at Home's employer revealed that the company was collecting pet food, and Domino's Pizza said that a start has been made on building up stocks of toppings.

Imports of luxury cars

The super-rich also import more luxury cars for the Brexit deadline to avoid rates that could be introduced after a hard Brexit. More than 3,800 luxury cars were imported last year, an increase of 16% over the past 12 months, according to law firm Boodle Hatfield.

A "no-deal Brexit could mean that the import of luxury cars becomes 32% more expensive at night," said Fred Clark of Boodle Hatfield. "Moving cars to and from the UK is likely to be more difficult if the UK leaves the EU without an agreement. More people are now taking that risk seriously and bringing vehicles from the EU to the UK.".