Sunday, 30 October 2016 16:38

ENERGY, food and travel price hike as brexit set to raise the cost of living

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The SNP has called on the UK government to take action as millions of families across Scotland and the UK are set to face hikes in the price of energy, food, travel and other everyday costs as the damaging impact of leaving the EU begins to hit living standards.


 
Energy experts have today warned that the crash in the value of the pound and increased wholesale costs since the EU referendum could lead to Energy suppliers introducing a five per cent rise in electricity bills this winter costing 18 million families on standard tariffs an extra £465million a year.
 
On Friday, Typhoo became the latest in a long-line of companies to warn that the impact of Brexit would force a rise in the cost of groceries, with Chief Executive Somnath Saha describing the fall in the pound as “an absolute disaster” for the company that would force a price hike in Typhoo Tea. Meanwhile, the owner of British Airways warned the cost of flights may have to go up to offset the “very significant negative currency impact” on the business.
 
These warnings follow concerns raised by the British Retail Consortium earlier this month that families would pay higher prices in shops if the UK government opts for a hard Brexit – with the cost of everyday goods rising as a result of tariffs.
 
Commenting Callum McCaig MP, SNP spokesperson on Business, Energy and Industrial strategy said:
 
“These are the latest in a long-line of warnings from businesses and industry experts about the negative impact of leaving the EU. The UK government must start listening and take action to prevent the living standards of millions of families being hit by Brexit price hikes, at a time when many are already suffering under the strain of Tory austerity policies.

“It's now almost five months since the EU referendum and we are still no clearer as to the UK government’s plan. The ongoing uncertainty and increasing threat of a right-wing hard Brexit is causing growing concern among businesses, investors and markets - and it is hitting jobs and communities across the UK.
 
“It is clear that leaving the EU is the biggest threat to Scotland’s long-term prosperity – along with the increased cost of living it has the potential to cost the Scottish economy up to 80,000 jobs over the next decade and up to £11.2 billion per year by 2030.
 
“Many families are now facing winter with uncertainty over their jobs and the affordability of basic living essentials, like food and fuel. That’s why SNP will continue to do everything we can to stand up for Scotland’s interests and protect Scotland’s relationship with Europe – in line with the clear wishes of the Scottish people.”

‘Families face christmas fuel bill hike fuelled by crash in the pound following Brexit’ - http://www.mirror.co.uk/news/uk-news/families-face-christmas-fuel-bill-9153572
 
‘Cost of a cuppa to go up’ - http://www.bbc.co.uk/news/business-37799701
 
‘British Airways warns of higher air fares due to weak pound’ - http://www.scotsman.com/news/transport/british-airways-warns-of-higher-fares-due-to-weak-pound-1-4271685

‘British retail consortium warn against a hard Brexit’: http://www.standard.co.uk/news/politics/hard-brexit-will-increase-our-prices-retailers-warn-government-a3365111.html