Supermarket boss says there will be ‘very modest’ food price changes after Brexit
29 December 2020, 07:12
A supermarket giant has predicted what the Brexit deal will mean for food prices.
The boss of Tesco has said the new post-Brexit trade deal will have little impact on the price of the food they sell.
Currently, the EU supplies 26% of all food and drink in Britain, with many people worried this could be affected when the country’s new deal with the EU comes into effect on January 1.
But chairman John Allan said any price increase due to the agreement will be ‘very modest indeed’ and the deal was a ‘good outcome’.
Mr Allan told the BBC: “There’ll be a little bit more administration associated with importing and exporting.
“But in absolute terms, I think that will hardly be felt in terms of the prices the consumers are paying.”
He added this is ‘far better’ than a no-deal, which he warned could have seen consumers paying 3%-5% more in food bills.
Mr Allan said this prediction of price increases was based on the risk of tariffs being introduced if no agreement was made with the EU.
But he did warn that the process of importing and exporting goods will mean businesses will face more admin such as customs documents.
The supermarket boss later added: "We won't be seeking food from other countries that have different and potentially lower food standards than us, so I don't think it's going to make any material difference.”
According to Government food statistics, most of this country’s food comes from the UK (55%) and the EU (26%).
Other sources include South America (4%), North America (4%), Africa (4%), Asia (4%), Non-EU European countries (2%) and Australasia (1%).
This comes after EU ambassadors unanimously approved a provisional application for the EU-UK Brexit deal known as the Trade and Cooperation Agreement.
MPs will vote on the deal on Wednesday, with the deal thought to pass through and come into affect on January 1.