UK Business Groups Issue Warning on Post-Brexit Import Charges Impacting Food Prices

British business groups are concerned about the impact of newly announced post-Brexit charges on plant and animal imports. They fear that these charges could lead to an increase in food prices, especially since food inflation had recently decreased from double-digit rates.

Starting from April 30, UK businesses will be required to pay up to £145 ($184) per delivery of most animal products, plants, or plant products imported from the European Union through the Port of Dover and Eurotunnel. The Department for Environment, Food and Rural Affairs made this announcement on Wednesday. The Port of Dover and Eurotunnel, which are key entry points for UK food imports, will be affected by these new charges.

Importers will have to pay £29 ($37) per type of product, up to a maximum of £145 for a single delivery containing several different products.

A French Camembert cheese sits with meat and cheese products from across Europe in a shopping basket inside a Morrisons supermarket, operated by Wm Morrison Supermarkets Plc, in this arranged photograph in London, U.K., on Wednesday, Aug. 8, 2018. Morrisons reported a growth in profits in their most recent financial year, boosted by food price inflation. Photographer: Chris J. Ratcliffe/Bloomberg via Getty Images

In a Morrisons supermarket in London, a shopping basket contains a French Camembert cheese along with various meat and cheese products from different parts of Europe. This photograph was taken on Wednesday, Aug. 8, 2018. The supermarket is owned by Wm Morrison Supermarkets Plc. Morrisons recently reported an increase in profits for their latest financial year, which was driven by food price inflation. The photo was taken by Chris J. Ratcliffe and is from Bloomberg/Getty Images.

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In practice, this means that a truck loaded with only one type of meat will have to pay a minimum charge of £29. However, a truck of the same size carrying a variety of meats, yoghurts, and cheeses could face the highest charge. This maximum fee may need to be paid multiple times, depending on where the truck is coming from and where it is going.

According to Tom Southall, the deputy chief executive of the Cold Chain Federation, these charges could be a contributing factor in preventing food inflation from decreasing. The Cold Chain Federation represents UK businesses that transport perishable goods requiring refrigerated storage.

Trade groups have warned that UK importers are likely to pass the new levies onto consumers. This has resulted in annual UK food price inflation reaching over 19% in March 2023, the highest rate in 45 years, and standing at more than 10% as recently as October. However, by February, it had eased to 5%.

The new charges are a major setback for small and medium-sized importers in the UK, according to William Bain, head of trade policy at the British Chambers of Commerce. He expressed deep concern for retailers, cafes, and restaurants.

We are calling on the government to rethink their import charge proposals soon. If they do not, there is a possibility of increased prices for everyone, when we should be focusing on reducing business expenses and food price hikes.

Smaller European exporters could also suffer, as British companies might request them to cover part of the additional expenses.

Some people are already thinking that serving the UK is too expensive or too much of a hassle, according to a statement made to CNN. While most products in supermarkets will still be available, smaller, specialty items might be affected. This means that Britons may not see as many options at their local cheese or meat deli counter.

The new charges are aimed at helping the government fund its post-Brexit border facilities. These charges will start on the same day that physical checks are implemented for numerous animal and plant products from the EU.

Trade groups have expressed their concerns about the limited time provided for businesses to get ready for the new adjustments.

The chairman of the Horticultural Trades Association, James Barnes, mentioned that the announcement made on Wednesday was received at the last minute. He also highlighted that the sudden increase in costs, without any significant benefits, will negatively impact the competitiveness of UK horticulture in just one month.

He mentioned that the charges could lead to higher costs, less options for consumers, and more empty shelves.

The association is made up of approximately 1,400 retailers, growers, manufacturers, and landscapers who depend on imported plants.

A government spokesperson mentioned that the new charges were discussed with UK businesses last summer and are at the lowest end of the range.

The spokesperson told CNN that the £145 cap was established to assist smaller businesses. They emphasized the government's dedication to supporting businesses of all sizes and sectors as they adjust to new border checks, ensuring a seamless flow of imported goods.

Editor's P/S:

The announcement of new post-Brexit charges on plant and animal imports has sparked concerns among British business groups. These charges could lead to an increase in food prices, especially since food inflation had recently decreased from double-digit rates. The charges, which range from £29 to £145 per delivery, will impact businesses that transport perishable goods requiring refrigerated storage, such as meats, yoghurts, and cheeses.

The charges are aimed at helping the government fund its post-Brexit border facilities. However, trade groups have criticized the charges, arguing that they will increase costs for businesses and consumers, and could lead to a reduction in the variety of food products available in the UK. They also expressed concerns about the limited time provided for businesses to get ready for the new adjustments, which will begin on April 30th.