UK food giants are blaming Labour’s policies rather than global events for pushing up prices – cutting through government spin that inflation is out of their hands. Rachel Reeves has been quick to cite Trump’s tariffs and ongoing wars for troubles at home…
The Food and Drink Federation expects food and drink inflation to hit 5.7% by December, pointing to the “financial burden of government policies” such the NICs hike and the new ‘net zero’ packaging tax. Food prices are already 38% higher than in January 2021, while the OECD forecasts the UK will suffer the highest inflation in the G7…
Labour’s failure to cut red tape is also taking the blame. Ranjit Singh Boparan, owner of 2 Sisters – the country’s largest chicken producer – warned:
“We’re in a vicious cycle. Give us planning permission, and we’ll support the farms to build more infrastructure to supply the food on the plate. They can’t get planning permission, demand is growing, so prices are going up.”
Meanwhile, the Institute of Chartered Accountants in England and Wales reports that business confidence is in “freefall” ahead of Reeves’s winter budget, with firms already cutting spending in anticipation of tax rises. It’s cold out there…
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