House of Lords Brexit report: Poorer households forced into below-par imports as food prices skyrocket

The report, Brexit: food prices and availability, warns of a potential scenario of splitting Britain in two where wealthier people can afford more expensive and better quality food, while poorer households will be forced to buy inferior imports because they will not be able to afford anything else.

The key findings of the report – published by the Lords’ EU Energy and Environment Sub Committee – show that 30 percent of food eaten in the UK comes from the EU and another 11 percent from non-EU countries under the terms of trade deals negotiated by the EU.

While the UK Government hopes to negotiate a trade agreement to allow tariff-free and “frictionless” imports of food to continue, this is by no means a guaranteed outcome.

The Committee’s report says that a so-called “best case scenario,” with no tariffs and few customs barriers, international rules would oblige the UK to conduct more customs and borders checks than is currently the case.

If the British Government can’t negotiate an agreement by the time the UK leaves the EU next March, the increase in tariffs could lead to significant price rises for consumers. And on top of this, the additional customs workload could choke the UK’s ports and airports and significantly disrupt food deliveries. For instance, the port of Dover says that it cannot deal with the various tests on food products that will be necessary at the border and this will lead to serious delays and food perishing.

Overall, the industry remains extremely concerned that negotiations between the UK government and the EU are strained and failing to reach a robust exit deal that goes in favor of British industries and a hard Brexit will hit multiple sectors extremely hard.

The Committee also found that EU food imports could not easily be replaced by either producing more in the UK or importing more from non-EU countries as Britain’s self-sufficiency has been declining over the past 30 years and could not quickly be turned around. So, while there may be calls for the agricultural sector to step up and help support a renewed self-sufficient Britain and cut the dependency on food imports, this would take some time.

“The Government has some important choices to make. They have said they want to maintain high food standards but also that they would be willing to have minimal customs checks to avoid disruption at borders,” said Lord Teverson, Chairman of the Sub-Committee.

“They have said they want UK food and farming to be exemplars of high-quality products but also that they will seek trade deals that secure lower prices for consumers.”

“We are calling on the Government to set out what checks they do intend to carry out on food imports, to allow the food industry and customs authorities time to prepare and to reassure consumers that standards will be upheld. And we would urge the Government to consider the impact that Brexit may have on food inequality in the UK: will we have a situation where high quality, local produce is available for those who can afford it, with cheaper food imported for those on lower incomes? The UK needs a comprehensive food policy, to tackle these complex issues, and we urge the Government to produce one with some urgency.”

Reaction from food and drink industry
FDF Chief Executive Ian Wright CBE says how the report highlights how essential it is for Government to prioritize the interests of the UK's flourishing food and drink industry in the Brexit negotiations.

“As the UK's largest manufacturing sector, food and drink have prospered from frictionless access to European markets for valuable imports and exports. As the report confirms, any increased friction at borders will prove costly for the entire supply chain and cause short-term disruption for businesses, consumers and shoppers,” he said.

“The Committee is right to highlight the urgency of securing continued market access for UK food and drink firms to those countries with which the EU has a free trade agreement, home to one in 10 of our exports.”

“The committee's call for a comprehensive food security policy is encouraging, but as correctly suggested there is still a serious gap between Government confidence and industry concerns.”

Wright also warns that the clock is ticking towards next March when the UK officially leaves the EU.

“While the proposed transition period provides businesses with some certainty, it is certainly briefer than we believe would be optimum. The government must keep the readiness of both industry and systems under review. Time is running short and Government must offer clarity and realism to businesses on future customs arrangements and the Irish border.”

Meanwhile, UK Prime Minister and her government argue that many deals concerning food imports will simply “roll over” and the status quo will remain. However, as the Lords’ report warns, there is no guarantee this will happen and industry is watching closely as the Brexit date draws ever closer.