Food price rises ‘on way if no Brexit deal is agreed’

SHOPPERS FACE significant hikes in food bills if the Government fails to secure a free trade deal with the European Union, peers have warned.

In a bleak assessment of the impact of Brexit, they suggested grocery costs would rise, businesses could go bust and supplies put at risk.

Customers could be left in a two-tier system that means the better off buy more expensive British goods while those who are poorer are left with lower-standard cheap imports.

Peers said there was a “striking” contrast between Government confidence about the potential impact of Brexit on the price and availability of food and concerns raised by the industry.

The UK’s ports would be choked up with delays if EU food imports are subject to the same border checks as other imported produce, the House of Lords’ EU Energy and Environment subcommittee warned.

Allowing them through with few checks would raise safety concerns, it added.

Peers said even though it was unclear yet what any potential agreement could have, it was “inconceivable” that Brexit would have no impact on EU food imports to the UK.

“If an agreement cannot be negotiated, Brexit is likely to result in an average tariff on food imports of 22 per cent,” the report said.

“While this would not equate to a 22 per cent increase in food prices for consumers, there can be no doubt that prices paid at the checkout would rise.”

Separately, a Conservative MP has said that Gibraltar should be given the opportunity to elect its own MP after Brexit as a reward for its “steadfast and loyal support to Britain”.

Brexiteer Craig Mackinlay is to introduce a Private Member’s Bill offering residents of the British Overseas Territory, which recorded the strongest Remain vote of any area in the 2016 EU referendum, the right to elect a politician to Westminster.