British consumers are preparing to carry on shopping despite the mounting political chaos over Brexit, according to a survey, even as business leaders increasingly sound the alarm over the potential hit to the economy.
More than half of consumers in the nationwide survey told the accountancy firm PwC they had not, and would not, alter their spending habits over the course of this year as a consequence of Brexit.
According to the study of more than 2,000 shoppers carried out in December, parts of Britain with higher proportions of leave voters were more likely to say they would not change their plans.
As many as 70% of consumers in north-east England said they had not changed their spending plans last year and would not do so in 2019, versus 41% of shoppers in London saying they had already curtailed their spending.
Kien Tan, the retail strategy director of PwC, said that Brexit fears were likelier to have an impact on spending in wealthier areas as poorer consumers had less spending to curb in the first place.
“The reality is that all this stuff is going on politically but, in terms of people’s day-to-day lives, it really only affects certain groups of people,” he added.
The analysis comes after official figures suggested that consumers shrugged off fears over Brexit to raise their spending in January. It also comes as households start to see real incomes rise, as inflation fades and annual wage growth accelerates.
While consumers might appear to be tuning out of the political chaos over Brexit, UK companies have reacted with greater concern.
Britain’s biggest manufacturers will warn the government on Tuesday that failure to secure a deal with Brussels would be catastrophic, with a warning that reverting to World Trade Organization rules would “kill off some sectors of industry overnight”.
Make UK, the manufacturing lobby group previously known as the EEF, will raise the alarm at its annual conference and dinner before Philip Hammond, the chancellor, addresses industry leaders.
However, despite most multinational firms having Brexit contingency plans in place, smaller outfits are believed to be lagging behind. The Bank of England has previously warned that most UK businesses are unprepared for a no-deal Brexit.
In response to the potential risks, Barclays announced on Tuesday that it is preparing to host more than 100 “Brexit clinics” in March, in an attempt to give extra support to businesses across the country.
The bank’s business relationship managers will lead sessions on managing cash flow, exporting goods abroad, supply chain management, labour and fraud prevention.
Barclays’ CEO, Jes Staley, said: “Barclays is fully prepared for any Brexit scenario and we stand ready to help our clients through this period too.”
