{"id":70808,"date":"2016-05-22T09:28:00","date_gmt":"2016-05-22T09:28:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=ee1b319c3c49c36a6317468f64f9404c"},"modified":"2016-05-22T09:28:00","modified_gmt":"2016-05-22T09:28:00","slug":"press-release-pm-family-shopping-could-rise-by-220-a-year-after-a-vote-to-leave","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=70808","title":{"rendered":"Press release: PM: Family shopping bill could rise by \u00a3220 a year after a vote to leave"},"content":{"rendered":"<div class=\"govspeak\">\n<div class=\"call-to-action\">\n<ul>\n<li>fall in sterling would increase the cost of everyday items<\/li>\n<li>average family of 4 could face extra costs of around \u00a3220 after 2 years<\/li>\n<li>analysis based on average of independent studies of the expected fall in the pound<\/li>\n<\/ul>\n<\/div>\n<p><a href=\"https:\/\/www.gov.uk\/government\/publications\/impact-of-a-sterling-depreciation-on-the-costs-of-a-family-shop-on-food-non-alcoholic-drink-clothing-and-footwear\">New Treasury analysis<\/a> shows that a fall in the value of sterling of more than 10%, caused by uncertainty after a vote to leave, would put upward pressure on the price of imports \u2013 after 2 years this would push up the annual costs of everyday items by more than \u00a3220 for a family of 4.<\/p>\n<p>A range of independent studies have predicted a decline in sterling following a vote to leave the EU \u2013 with an average of a 12% fall in the value of the pound against other international currencies.<\/p>\n<p>Today, using established economic modelling, the Treasury estimates that such a drop in the currency would, after 2 years, add around \u00a3220 to the annual cost of food, drink, clothing and footwear.<\/p>\n<p>The Prime Minister David Cameron said:<\/p>\n<blockquote>\n<p>This analysis makes absolutely clear that British families are better off remaining in a reformed European Union. Independent studies show that a vote to leave would hit the value of the pound, making imports more expensive and raising prices in the shops.<\/p>\n<p class=\"last-child\">This isn\u2019t about dry economics; this is about the economic security of hardworking families in Britain. Families are better off voting to remain in the EU \u2013 the alternative is a leap in the dark that would risk prosperity and security.<\/p>\n<\/blockquote>\n<p>Asda President and Chief Executive Officer, Andy Clarke, said:<\/p>\n<blockquote>\n<p>Asda has always been famous for its low prices and whatever the outcome of the referendum, we remain committed to that pledge.<\/p>\n<p class=\"last-child\">But a vote to leave represents uncertainty, including on prices. That is why our position in this debate has been clear from the outset \u2013 Britain should remain within the EU.<\/p>\n<\/blockquote>\n<p>Former Chief Executive of Waitrose Mark Price said:<\/p>\n<blockquote>\n<p class=\"last-child\">As a former head of Waitrose, I know the retail sector inside and out. It\u2019s clear that leaving the EU will see further pressure on the pound, which will mean higher prices for consumers.<\/p>\n<\/blockquote>\n<p>While retailers make individual decisions on pricing in their stores, there is an established link between the sterling exchange rate and prices in shops.<\/p>\n<p>This analysis does not include the potential added costs to families of higher tariffs that could be imposed on imported goods once the UK leaves the EU\u2019s single market.<\/p>\n<h2 id=\"notes-to-editors\">Notes to editors<\/h2>\n<p>The analysis conducted by the Treasury uses data on household expenditure published by the Office for National Statistics.<\/p>\n<p>A range of independent economic studies have all projected a depreciation in sterling immediately following a vote to leave the European Union.<\/p>\n<div class=\"call-to-action\">\n<p>Read the <a href=\"https:\/\/www.gov.uk\/government\/publications\/impact-of-a-sterling-depreciation-on-the-costs-of-a-family-shop-on-food-non-alcoholic-drink-clothing-and-footwear%E2%80%8E\">analysis conducted by the Treasury.<\/a><\/p>\n<\/div>\n<p>The Treasury has taken the average of these estimated depreciations (12%) and used an established econometric model previously used by the Bank of Canada to model the impact on prices after 2 years.<\/p>\n<p>Impact of 12% depreciation of sterling on shop of a 2 adult 2 child household:<\/p>\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>annual spend in 2014 (\u00a3)<\/td>\n<td>annual spend 2 years after depreciation (\u00a3)<\/td>\n<td>change (\u00a3)<\/td>\n<td>percent change (%)<\/td>\n<\/tr>\n<tr>\n<td>food and drink<\/td>\n<td>4233<\/td>\n<td>4355<\/td>\n<td>123<\/td>\n<td>2.9<\/td>\n<\/tr>\n<tr>\n<td>clothing and footwear<\/td>\n<td>1986<\/td>\n<td>2085<\/td>\n<td>98<\/td>\n<td>5.0<\/td>\n<\/tr>\n<tr>\n<td>total<\/td>\n<td>6219<\/td>\n<td>6440<\/td>\n<td>221<\/td>\n<td>3.6<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Source: ONS Family Spending 2015<\/p>\n<p>Note: totals may not sum due to rounding.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The annual shopping bill of the average British family could go up by more than \u00a3220 after a vote to leave the European Union.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/70808"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70808"}],"version-history":[{"count":1,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/70808\/revisions"}],"predecessor-version":[{"id":70832,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/70808\/revisions\/70832"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}