Brexit strikes again on cost of living

As if things were not hard enough for families struggling to make ends meet, the Guardian reports that  consumers could see a rise in food prices after the UK government announced the introduction of post-Brexit charges on imports of EU food and plant products later this month.

The paper says that the government has published details of fees – known as the common user charge – which will apply to small imports of animal products and plants, such as sausages, cheese and yoghurt, entering the UK from the EU through the port of Dover and through Eurotunnel at Folkestone:

The Department for Environment, Food and Rural Affairs said the fees of up to £145, which come into force on 30 April, will pay for border inspections and improve biosecurity by preventing the import of plant and animal diseases into the UK. The charges apply to imports entering the UK and transits entering and leaving.

Trade groups criticised the charges and said the move would increase business costs and food prices and lead to potentially fewer choices for shoppers.

William Bain, the head of trade policy at the British Chambers of Commerce, called the move “extremely disappointing” and said the government had failed to listen to industry concerns.

“The level of import charges shows scant regard to the interests of both businesses and consumers,” he said. “A flat rate fee for bringing most animal and plant products into the UK is a hammer blow for small and medium-sized importers. It’s also deeply concerning for retailers, cafes and restaurants.”

He said importing a small consignment of goods with only five different meat, poultry, egg, milk or some fish products in the medium-risk category meant firms would face a bill of £145 a package under these proposals.

Phil Pluck, the chief executive of the Cold Chain Federation, which represents importers of perishable goods, said the charges had been introduced “at the last minute”, which he said gave companies very little time to alter their commercial arrangements with EU customers.

“This is in no way helpful to UK-based importers and the whole EU supply chain. It reinforces the government’s slapdash approach to a vital part of UK plc,” he said.

“Our main concern is that this is now certain to negatively affect food prices. The confirmation that common user charges will apply from 30 April means that UK importers of medium and high-risk goods will have to pass this cost on to either the EU importer, the smaller UK retailer, or the UK consumer.

“Ultimately, this will increase business costs and food prices and potentially lower choices for the shopper.”

Yet another consequence of leaving the EU that pro-Europeans warned about during the referendum, but which warnings were dismissed as scare-mongering by Brexiteers.