So today we’ve woken to a surprise Hung Parliament result. But what does that mean for the UK’s export and logistics businesses?
Peter Ward, CEO of the United Kingdom Warehousing Association (UKWA), says that with Brexit negotiations so close the result means a failure to provide the level of stability needed. Ward called on those in the industry to provide calm. “Similar to a year ago after the referendum we appeal to the leaders in our resolute sector to provide the calm and security needed, confident that the logistics industry will adopt its steadfast and notorious business as usual approach during this critical time,” he said.
However at ParcelHero the company’s head of consumer research David Jinks says the result could mean a softer Brexit and is therefore better news than an all out Conservative win. “ParcelHero has serious concerns over the potential impact of tariffs and Custom’s red tape following a so called ‘Hard Brexit’. A strong win would have strengthened Theresa May’s hand in Brexit negotiations; but that could have resulted in a tougher Brexit deal,” he said.
Instead Jinks says there will be an increased need for consensus with other parties – and both the Labour Party and Lib-Dems are in favour of a softer Brexit.
“Our industry had been looking at a likely scenario of a Brexit deal that involved the UK leaving the Single Market; inevitably leading to new tariffs and Customs delays. However, Labour and the Lib-Dems oppose leaving the Single Market. That means the odds are that we will now get a Brexit deal that is considerably softer-boiled than it would have been, in order for it to pass the promised vote for MPs at the end of the negotiations,” he said.
“In further good news for exporters the result has again weakened the pound; which makes UK products increasingly affordable overseas,” said Jinks.
However he said the Conservatives pledge to invest £40bn in transport infrastructure improvements, looked likely to go ahead which was good news. “That will reduce congestion and costs for UK delivery companies while the Conservative’s pledge to expand Heathrow will be useful for the many international transport companies who have distribution centres and infrastructure based around the airport’s freight services,” he said.
Image credit: Fotolia
What’s your view on the impact of the Election result on your industry? What implications do you believe it will have for the sector? Comment below or email [email protected]