Commercial Equipment: The Forgotten Impact of Brexit on UK Hospitality
The United Kingdom is nearing the end of the transition period and beginning 2021, will no longer be a member of the European Single Market. The transition period was manufactured to allow room for trade negotiations post-Brexit, however with a UK-EU trade deal looking increasingly unlikely, businesses across the UK will be forced to adapt to a climate of tariffs, customs and new regulations in 2021.
As it stands, without a trade deal with the EU, the "UK Global Tariff" will apply to all imports from the EU from January 1st 2021. For the hospitality sector that's already suffered through a difficult period due to recent lockdown events, the tariff will undoubtedly result in higher prices for commercial plant and machinery on imports from EU manufacturers.
Not only this, but parts for breakdowns of existing machines will also see a price increase with many parts being sourced from the EU. Businesses across England, Scotland and Wales could potentially see higher servicing prices for their commercial washing machines, ovens, fridges and so fourth.
There are currently 50 days to go. Here are a few things you can do to prepare.
1. Follow the UK Government's official business guide to prepare for Brexit. This allows you to understand in more detail how you will be directly affected and the steps you can take to ensure a smooth as possible transition into 2021.
2. Contact your suppliers and understand what assets you currently have, or are interested in purchasing are imported from the EU. You can then be made aware on equipment or parts that you will face potentially higher prices for.
3. Potentially look to Northern Ireland companies who will remain apart of the EU Single Market from January 2021. This opens a door for Northern Irish companies to obtain EU imports with no tariffs, undoubtedly resulting in a much lower selling price than English companies who will be forced to pay tariffs.