New analysis from GMB union shows households could face a 17% surge in grocery shopping basket costs, with hundreds of pounds extra on food and drink bills if the UK leaves the EU with a ‘no deal’.

The figures show a family’s weekly shop could rocket by more than £800 a year.

A report by Acuity Analysis for GMB union compares a weekly ‘basket of goods’ in current prices compared to scenario in which the UK leaves the EU without a trade agreement with the European Union.

As a member of the EU, the UK is part of the EU Single Market and EU Customs Union and goods are imported and exported across 27 countries without tariffs or other trade barriers.

If the UK leaves the EU without a trade agreement with the European Union, the WTO’s Most Favoured Nation (MFN) rules will apply, and duties will be payable on UK imports and exports.

There are currently no additional costs when a UK company imports or exports goods to elsewhere in Europe.

A sample ‘basket of goods’ could increase in cost by £15.61 per week – amounting to £811.72 per year (17%).

Items in line for price hikes under WTO terms include:

Butter (Own brand, 250g) – up 42p from £1.50 to £1.92 (+28%)
Cheese (Own brand mature Cheddar, 460g) – up 62p from £2.30 to £2.92 (+26.9%)
Sausages (8 pack Pork Sausages, 454g) – up 43p from £1.70 to £2.13 (+25.3%)
Potatoes (Maris Piper 2.5Kg) – up 32p from £2.22 to £2.54 (+14.4%)