By Anna Cooban, CNN
London (CNN) — British business groups are warning that newly announced post-Brexit charges on plant and animal imports could push up food prices not long after food inflation came down from double-digit rates.
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.
In practice, this means that a truck loaded with, say, a single type of meat will incur at least a £29 charge, while a same-sized truck carrying different meats, yoghurts and cheeses could incur the highest charge. And that maximum may have to be paid multiple times, depending on the truck’s origin and destination.
That’s because UK importers are likely to pass the new levies onto consumers, as trade groups have warned.
Annual UK food price inflation topped 19% in March 2023, the highest rate in 45 years, and stood at more than 10% as recently as in October. By February, it had eased to 5%.
‘Hammer blow’
William Bain, head of trade policy at the British Chambers of Commerce, said the new charges dealt a “hammer blow for small and medium-sized (UK) importers” and were “deeply concerning for retailers, cafes and restaurants.”
Smaller European exporters may also be badly hit, according to Southall, because British businesses may ask these exporters to foot some of the extra costs.
The new charges are intended to help the government cover the cost of operating its post-Brexit border facilities and will come into force on the same day that physical checks are introduced on many animal and plant products from the EU.
Trade groups have also criticized the lack of time given to businesses to prepare for the latest changes.
James Barnes, chairman of the Horticultural Trades Association, said Wednesday’s announcement came at the “eleventh hour” and confirmed worries that “in just one month, UK horticulture’s competitiveness will again be hit by a cost hike for no material gain.”
The association represents around 1,400 retailers, growers, manufacturers and landscapers that rely on imported plants.
A government spokesperson said the new charges “were at the bottom end of the range” discussed with UK businesses during a consultation period last summer.
The-CNN-Wire
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