Brits spend £4bn stockpiling for no-deal Brexit

New research has suggested one in five people are already hoarding food, drinks and medicine – and have spent an extra £380 each on average to do so.

Figures from finance provider Premium Credit found about 800,000 people have spent more than £1,000 to build up stocks on longer-life products ahead of the Halloween deadline for the UK leaving the EU.

Of those who said they were stockpiling, 74% said they had purchased extra food.

Half of them said they had bought medicines and 46% had splashed out on extra drinks.

According to the report, Brexit-related stockpiling is also hitting cash flow, as companies take out credit to cover the cost of insurances and other fixed costs.

Adam Morghem of 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 cash flow, which has been quite negative.

“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 cash flows, forcing more businesses and households to spread the cost of their insurance.

“Businesses should also check with their brokers to make sure their stockpiled goods are properly insured.”

It comes as consumers and businesses alike seek to mitigate the impact of the short-term supply problems that have been predicted if Britain leaves the EU without a deal.

Pets at Home boss Peter Pritchard said last week that it is stocking up on pet food, while AO.com boss John Roberts said his business spent £15m building up stocks of electrical goods ahead of the original March 31 Brexit deadline.