Food prices may soar in case of no-deal Brexit, says Gove

THE cost of food could rise sharply if Britain leaves the European Union without a deal, Michael Gove has admitted.

The Environment Secretary conceded yesterday that there was a risk of significant price increases but insisted the Government was committed to getting the withdrawal agreement through Parliament.

He was responding to figures published last week by the British Retail Consortium, which forecast that the price of cheese could increase by almost a third, while beef could also rise by 29 per cent.

Experts have said that leaving the EU with no deal could severely affect the UK and Ireland’s integrated supply chains, while reverting to World Trade Organisation rules could result in tariffs of up to 45 per cent on household goods. Asked whether food prices would go up as under such as scenario, Mr Gove told the BBC One’s Andrew Marr Show: “It is one scenario, but it is not the scenario we plan to go down.”

While the UK could opt for a “particularly high level of tariffs” to protect domestic food producers, Mr Gove instead suggested the Government would set them at “appropriate” levels that also “protect the consumer”.

However, he added that regardless of tariffs, “the friction of leaving without a deal would impose additional costs on food production here”.

“If we do secure a deal then we’re going to get the benefits of a tariff and quota-free access to the European Union and also the benefits of being able to import food from other [countries] which we don’t grow here, which at the moment is subject to tariffs which we could lower. It’s a win-win.”