<ul class="summary-list"><li><keyword id="1723434" type="COMPANY" weightage="60" keywordseo="arla">Arla</keyword>'s UK boss warns that leaving the EU without a trade deal would lead to price rises in British shops.</li><li>The dairy company was in the headlines on Sunday when UK Environment Secretary <keyword id="8943251" type="PERSON" weightage="60" keywordseo="George-Eustice">George Eustice</keyword> said it would have to move production of Lurpak butter from Denmark to Britain to avoid tariffs in a no-deal scenario.</li><li>However, Arla cannot do so because it would be illegal, its UK Managing Director Ash Amirahmadi said.</li><li>Amirahmadi warned that tariffs on dairy imports would trigger price rises in the UK: "I would be very surprised if our customers didn't have to absorb the cost."</li><li>He said that the UK dairy sector was potentially heading for a winter "triple whammy" of leaving the EU without a trade deal coinciding with the second wave of the coronavirus and the demands of Christmas.</li></ul>The UK boss of one of Europe's biggest dairy companies has corrected the UK government after it suggested that the company could simply move part of its production from the EU to Britain in the event of a no-deal <keyword id="6355333" type="UNKNOWN" weightage="60" keywordseo="Brexit">Brexit</keyword>, telling Business Insider that it would have to increase prices for UK consumers instead.The UK Environment Secretary George Eustice told the BBC on Sunday that Arla, which makes the popular Lurpak brand of butter in Europe, could make the product in the UK instead to avoid costly tariffs if Britain fails to secure a trade deal with the EU by the end of the year.<a href="https://twitter.com/BBCPolitics/status/1327915454464204804?s=20" target="_blank" rel="noopener">Eustice told BBC's Andrew Marr:</a> "In a non-negotiated outcome, what would happen is companies like Arla, which is a big Danish company, sells brands like Lurpak in the UK that are manufactured in Denmark, they would have to relocate that production to the UK."However, Ash Amirahmadi, Arla's UK Managing Director, told Business Insider that the company would not be able to move Lurpark production to the UK, as Eustice told the BBC's Marr, because it would be illegal."The picture around moving products into the UK is a bit more complicated than that statement," he said."If you take Lurpak on its own, it is subject to legal protection which means it can only be made in Denmark."It can't be produced in the UK. The Secretary of State may or may not have known that."He warned that tariffs on dairy products imported into the UK from abroad, like Lurpak from Denmark, would almost certainly lead to price rises in UK supermarkets and potentially a reduction in product availability."We would have to pass on the cost to our customers," Amirahmadi told Business Insider."Obviously it's not for us to tell customers what to do. But I would be very surprised if our customers didn't have to absorb the cost. If we are in a situation of no negotiated deal, then we are looking at increased retail inflation."The dairy industry is set to be one of the hardest hit in the event of UK and EU negotiators failing to negotiate a trade deal before the end of the year.Around 98% of UK dairy imports come from the EU and under UK government plans from January 1, 2021 they will have tariffs of around 35% slapped on them if negotiators fail to agree a free trade deal. A <a href="https://www.lse.ac.uk/business-and-consultancy/consulting/assets/documents/the-impact-of-brexit-on-the-uk-dairy-sector.pdf" target="_blank" rel="noopener">2018 London School Economics report</a> into how Brexit would affect Arla specifically warned that "any increases in trade costs would likely have a major impact on the domestic dairy market in the form of shortages of products and significantly higher prices."Amirahmadi said that the dairy industry was particularly vulnerable to the UK trading with the EU on costly World Trade Organisation Terms, or what Prime Minister Johnson's government calls "Australian-style" trading rules, because "dairy is high-volume, low-margin," meaning businesses would quickly struggle to afford increased costs.He warned that the UK was "potentially heading for a triple whammy" — namely, the adverse effects of Brexit on food prices and availability coinciding with the impact of the coronavirus and the demands of the Christmas period."We've got Christmas trading and nobody is really that clear how Christmas is going to trade this year, we've got a second wave of COVID-19 and a recession, and then the potential of products being less available in shops and prices being higher."Consumers are going to be pretty grumpy," he said.<div type="image" title="Arla" height="750" width="1500" msid="79268024" hostid="261"></div>Arla is urging Johnson's government to secure a free trade deal with Brussels, he said, warning that "if we want to avoid availability issues and if we want to avoid consumer price inflation, then the only solution is a free trade agreement."The UK negotiating team fronted by David Frost is in Brussels, Belgium this week where it is continuing negotiations with its EU counterparts, led by Michel Barnier. The two sides are in a race against time to secure a free trade agreement and get it ratified by EU countries and parliamentarians before the end of the year, when the UK will leave the EU's trading rules.A spokesperson for Prime Minister Johnson said that the two sides were still grappling with disagreements over two issues: fisheries and what the EU calls a level playing field, which is intended to stop the UK undercutting European markets and vice versa."Significant issues remain, particularly on the so-called level playing field and fisheries," they said. "We are working hard to find solutions which fully respect UK sovereignty, but it is far from certain that an agreement will prove possible and time is now very short."

Lurpak producers correct UK government on Brexit and warn that a no-deal exit will mean higher prices

<ul class="summary-list"><li><keyword id="11893181" type="UNKNOWN" weightage="60" keywordseo="amazon" source="Orion">Amazon</keyword> is set to pay UK <keyword id="9145833" type="UNKNOWN" weightage="60" keywordseo="warehouse-workers" source="Orion">warehouse workers</keyword> a £50 ($69) <keyword id="11894927" type="UNKNOWN" weightage="60" keywordseo="bonus" source="Orion">bonus</keyword> if they turn up on time for work.</li><li>At least 2 sites in Northern England will pay the weekly bonus, the BBC reported.</li><li>The company said the reward was in order to support demand for the summer and festive seasons.</li></ul>Amazon will pay some of its UK staff a weekly £50 ($69) bonus if they turn up for all of their shifts on time.The marketplace giant will offer the payment to full-time staff who rack up 100% attendance. However, it will still apply if they have had to take sick leave or isolate due to COVID-19, <a href="https://www.bbc.co.uk/news/business-58321728">according to the BBC</a>.Amazon will pay the bonus to its warehouse workers at two northern England sites in Durham and Gateshead.An Amazon spokesperson confirmed to Insider that company is paying the bonus in order to support summer demand and prepare for peak, the period between Black Friday and Christmas.On Wednesday new Amazon CEO <a href="https://www.businessinsider.com/ceo-andy-jassy-amazon-hire-55000-tech-jobs-2021-9?r=US&amp;IR=TIR=T">Andy Jassy announced plans to recruit 55,000 workers</a> worldwide in tech and corporate roles.In May the company also promised <a href="https://www.businessinsider.com/amazon-hiring-75000-workers-1000-signing-bonuses-how-to-apply-2021-5?r=US&amp;IR=TIR=T">$1,000 starting bonuses in an attempt to recruit 75,000 warehouse and logistics workers</a> across the US and Canada. In August the company <a href="https://www.bbc.co.uk/news/business-58321728">revealed a similar plan for new UK starters.</a> Companies have been upping worker pay and offering bonuses for new starters in a bid to attract candidates amid an <a href="https://www.businessinsider.com/3-explanations-labor-shortage-jobs-market-mismatch-migration-morgan-stanley-2021-8?r=US&amp;IR=TIR=T">ongoing labour shortage</a>. Haulage firms in the UK and US have also been struggling to hire workers <a href="https://www.businessinsider.com/trucker-shortage-mcdonalds-nandos-run-low-could-get-worse-2021-8?r=US&amp;IR=TIR=T">which has left some facing a shortfall in supply</a>. The UK supermarket chain Tesco offered new lorry drivers £1,000 ($1,381) starting bonus to lure new applicants. Dairy company <a href="https://www.theguardian.com/uk-news/2021/jul/30/driver-shortage-crisis-threatens-uk-milk-deliveries-in-wake-of-brexit-and-covid">Arla offered new delivery drivers £2,000 ($2,761)</a> after not being able to deliver milk to 600 stores. A report by KPMG suggested that <a href="https://www.businessinsider.com/uk-starting-salaries-spiral-job-seekers-timing-2021-8?r=US&amp;IR=TIR=T">starting wages rose sharply in the UK in July as firms scrambled to recruit and retain new starters, </a>to an index rate of 73.2 and 66.7, from 66 and 61.6 in June

Amazon is offering some staff a $69 weekly bonus for showing up on time

<ul class="summary-list"><li>The long-term impact of a no-deal <keyword id="6355333" type="UNKNOWN" weightage="60" keywordseo="Brexit">Brexit</keyword> would be worse than the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword>, according to <keyword id="106488" type="CITY" weightage="60" keywordseo="Bank-of-England">Bank of England</keyword> Governor Andrew Bailey.</li><li>On Monday he told Members of the UK Parliament that it would take the economy longer to adjust to leaving the European Union without a free trade deal at the end of the year compared to the strain of the pandemic.</li><li>His comments echo recent analysis that said the long-term economic impact of trading with the EU on WTO terms — or what <keyword id="6380867" type="PERSON" weightage="60" keywordseo="boris-johnson">Boris Johnson</keyword> calls an "Australian" arrangement — would eclipse the pandemic.</li><li>UK and EU negotiators are racing to secure a trade deal and put it into law before the end of the year.</li></ul>The long-term impact of leaving the European Union without a free trade deal on the UK economy will be worse than that of the coronavirus pandemic, the Bank of England Governor Andrew Bailey has warned."I think the long-term effects [of leaving the EU without a trade deal] would be larger than the long-term effects of COVID," Bailey told the House of Commons Treasury Select Committee yesterday."It takes a much longer period of time for what I call the real side of the economy to adjust to the change in openness and adjust to the change in the profile of trade."Bailey's remarks echoed a report published by the London School of Economics (LSE) and UK in a Changing Europe think tank <a href="https://ukandeu.ac.uk/research-papers/what-would-no-deal-mean/" target="_blank" rel="noopener">in September, </a>which concluded that the long-term, economic impact of a no-deal Brexit could be up to three times as worse as the pandemic on the UK economy.LSE modelers put the long-term economic damage of leaving the EU without a free trade deal on UK GDP at 8%, compared to the Bank of England's forecast at the time of a 1.7% reduction by 2022.Trade talks between UK and EU negotiators are continuing this week with time running out for both sides to agree a deal and put it into legal text before Britain drops out of the bloc's trading rules on December 31.Boris Johnson's UK government and the EU have spent months wrangling over a handful of thorny issues: fishing rights, how any final deal will be governed, and "level-playing field" rules ensuring fair competition between each other.Recent reports have suggested that two sides are edging closer to an agreement as the New Year cliff edge looms.Irish Taoiseach Michael Martin, whose country would feel the effects of a no-deal outcome more than any other EU member state, <a href="https://www.bloomberg.com/news/articles/2020-11-23/brexit-deal-outline-may-emerge-within-days-irish-premier-says" target="_blank" rel="noopener">on Monday said</a> he was "hopeful" that a deal would be reached at the eleventh hour.An EU source told Business Insider they were "an optimist when it comes to the likelihood of a deal" but "I have also urged caution because we cannot assume all sides to be rational at all times."<div type="image" title="Boris Johnson" height="728" width="1457" msid="79388660" hostid="261"></div>Failure to negotiate a deal would result in hefty tariffs being imposed on goods sold between the UK and EU from January 1, 2021, leading to a range of food and everyday items becoming more expensive. A recent case in point is Lurpak butter: the UK managing director of Arla last week <a href="https://www.businessinsider.com/brexit-arla-lurpak-boss-warns-no-deal-higher-food-prices-2020-11?r=US&amp;IR=TIR=T" target="_blank" rel="noopener">told Business Insider</a> that the dairy company would be forced to increase the price of Lurpark sold in Britain if tariffs were slapped on the exports to the UK from next year.However, there is set to be disruption at Britain's borders in January even if the two sides agree a deal, due to the Prime Minister Johnson's decision to break away significantly from the EU's single market and customs union.Alex Chisholm, Permanent Secretary at the Cabinet Office, on Monday told MPs on the Public Accounts Committee (PAC) that disruption was inevitable as there are "literally many millions of moving parts" as the UK prepares to leave the transition period on New Year's Eve. The UK government is bracing itself for queues on England's motorway in early next year as the thousands of lorries that transport goods to and from the EU encounter new checks and bureaucracy at the border.There is also concern that thousands of small businesses will not be ready to trade on new arrangements with the EU.The Border &amp; Protocol Delivery Group's Emma Churchill yesterday told MPs that trader readiness was labelled "red," meaning it was not expected to be in place on time with just weeks to go. Many small businesses have told the UK government that they are too busy dealing with the coronavirus to focus on Brexit, Churchill told MPs.

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Lurpak producers correct UK government on Brexit and warn that a no-deal exit will mean higher prices

Adam Payne

Amazon is offering some staff a $69 weekly bonus for showing up on time

Stephen Jones

A no-deal Brexit will do more damage to the economy than the coronavirus, Bank of England governor warns

Adam Payne