Brexit threats over hospital food bills
Firms try to hike prices, blaming fall in currency
THE cash-strapped NHS is facing yet another blow as suppliers demand it pays more for the food it serves to patients.
Ten food firms, including Marmite maker Unilever, claim the fall in sterling since the Brexit referendum has driven up their costs – and they are determined to pass the hit on to the Health Service.
The NHS in England already spends a staggering £800million a year on food, an average of roughly £10 per inpatient per day.
With such large sums involved, even a small increase in supplier costs would add millions to the bill. So far, the firms’ demands have been rebuffed, with the Department of Health (DoH) saying they should ‘honour prices’ set in contracts. But if – as many economists fear – the pound does not rebound, they will soon insist on higher prices. The growing row has
been revealed thanks to a Freedom of Information request submitted to the NHS Business Service Authority, which administers how food and equipment is bought.
Asked for details of price increase requests from food or drink suppliers since June 23, NHS BSA responded: ‘We have received ten price increase requests from suppliers. None of these have been accepted.’
They said suppliers had been ‘reminded of the need’ to honour agreed prices. The firms include Compass; Jacobs Douwe Egberts; Typhoo Tea, and Indian conglomerate Tata. Also on the list is Unilever, which triggered a row with Tesco last year after reportedly demanding Brexitrelated price-hikes on its brands.
A DoH spokesman said: ‘We renew contracts with suppliers regularly to ensure we get the best value for money.’
Compass and Jacobs Douwe Egberts declined to comment. The other firms did not respond.