Business and Trade – in the House of Commons on 18 May 2023.
What recent assessment she has made of the impact of her trade policies on food prices.
What recent assessment she has made of the impact of her trade policies on food prices.
Our free trade programme helps to remove market access barriers for importers and exporters, making the UK more competitive and contributing to a greater choice of goods. The UK’s trade policy works to increase access to good-quality, good-value food from around the world, while the liberalisation of tariffs can help to lower food prices.
UK food price inflation is already significantly higher than that in France, Germany and Italy. This week William Bain, the head of trade at the British Chambers of Commerce, said there was a strong prospect that new Brexit regulations coming into force later this year would drive prices even higher. Is it not time that this Government apologised for their ideological obsession with Brexit, which is forcing ordinary-working class families into poverty?
The hon. Gentleman is being somewhat selective. The figures from the Office for National Statistics showed that food price inflation in the UK was 19.2%—and the EU average is 19.2%. As for apologising, I will not apologise for the fact that when we left the EU, we got rid of hundreds of useless tariffs that were doing nothing other than pushing up prices for British consumers. We liberalised tariffs on environmental goods, and we liberalised tariffs on goods that we generally do not produce in the UK, thus massively reducing the total number of tariffs faced by British consumers. That is a good thing, throughout the UK.
Recent figures from the Trussell Trust show that food bank use across the UK by people in need of a three-day emergency food supply soared to a record 3 million in 2022-23. Does the Minister accept that food bank use, which has more than doubled in a decade, has a direct correlation with the disastrous Brexit —according to the London School of Economics—causing food prices to soar, and does he agree that more must be done to tackle a disgraceful situation in which too many of my constituents struggle to put food on the table?
All of us, on both sides of the House, are concerned about the struggles faced by our constituents, which is precisely why the Government have supported families through the challenges of the cost of living to the tune of £94 billion—£3,300 per household. As for the specific connection with trade, I refer the hon. Lady to the answer that I gave a moment ago: since we left the European Union, 47% of tariff lines in our tariff schedule have fallen to zero. The figure is 27% in the EU. British consumers are better off because of our tariff policy.
I call the SNP spokesperson.
If we take the Minister at his word that tariffs are coming down, that does not seem to be making much difference to the prices that people are paying at the supermarkets. Governments across Europe are taking action to tackle soaring food prices caused by what is termed greedflation. For example, in Ireland, supermarkets have been given a six-week ultimatum to bring down food prices; in France, the Government have agreed with retailers to keep the price of essential foodstuffs to the bare minimum; and Italy has set up a commission to monitor unusual movements in prices. Do Ministers accept that action to protect consumers from corporate greed is necessary and urgent?
As I said in answer to a previous question, food inflation is very similar in the UK and Europe, because we are all facing very similar challenges, including, of course, inflation through energy prices. That is precisely why we provided support to consumers to the tune of about half their energy costs this winter. Of course, we also provided support to businesses, which otherwise would have passed on higher costs to consumers; about a third of business energy prices have been covered by Government support. We are doing a lot, and the Prime Minister highlighted the challenges with a summit on food this very week.
I accept that we might be facing similar problems to mainland Europe, but we are certainly not getting the same degree of action from the Government to tackle prices in supermarkets. Does the Minister accept that by voting against my party’s motion on Tuesday calling on them to put pressure on supermarkets to pass on falling food prices to consumers, the UK Government sent an extremely clear signal to families in Scotland that they are not on their side?
Again, I and my colleagues continually engage with industry about how it can help support consumers, because both the Government and businesses have a responsibility to help consumers in these challenging times. That is precisely why we had the summit this week, which I am sure the hon. Member is well aware of.