New research reveals the rate at which UK businesses and households are stockpiling goods in preparation for Brexit has fallen, as it has adversely affected cashflows and household incomes.
The findings, which are from Premium Credit, one of the UK’s leading premium finance companies, reveal that 48% of people in work claim their employers stockpiled goods before the 31 March deadline for the UK to leave the EU, but since then half of these businesses have started to run down their stockpiled goods, and only 25% said they had maintained their stockpile levels. This is partly explained by the fact that 77% of them said their company cashflow had been negatively affected by their stockpiling – one in four (25%) said it had had a ‘very negative impact’.
In terms of households stockpiling, the findings show one in five adults had stockpiled goods before the 31 March deadline, but 27% said they have now used all of these up, with a further 51% saying they have used up some of these goods.
Premium Credit’s research reveals that 8% of people who have stockpiled goods for Brexit - over 800,000 people, each spent over £1,000 doing this.
Adam Morghem, strategy and marketing director at Premium Credit said: “The level of stockpiling by British businesses and households is well documented, but there has been little focus on the impact this has had on cashflow, which has been quite negative. This is no doubt forcing many of those who have stockpiled to start using these goods.
“Interestingly, over the past three months we have seen an increase in clients looking to use premium finance to pay for their insurance, and we believe a key factor behind this is the impact of stockpiling on cashflows forcing more businesses and households to spread to the cost of their insurance.
“Businesses should also check with their brokers to make sure their stockpiled goods are properly insured.”
In terms of stockpiling goods between now and the new Brexit deadline of 31 October, just 34% of employees believe their companies are currently doing this, and just 10% of people say they are currently stockpiling new goods.
Premium Credit is the market leader in the UK and Ireland and the only premium finance provider accredited by BIBA.
For more information, please visit: www.premiumcredit.com