HANSARDCommons29 Jun 20239 contributions
Food Prices
3. What recent assessment she has made of the potential impact of her Department’s trade policies on food prices.
We recognise the important role that trade can play in improving food security. That is why our trade policy aims to help people to access good-quality and good-value food. Our free trade agreements help to remove market access barriers, supporting our importers and exporters. The new developing countries trading scheme, for example, reduces tariffs on nearly £1.4 billion-worth of agriculture goods, and we work with international partners, including at the World Trade Organisation, to remove trade barriers and strengthen the UK’s global food supply.
I am grateful to the Minister for his answer, but Melissa Leach, the director of the Institute of Development Studies, has spoken about the need to increase access to affordable, nutritious food. She said:
“Over the last decade, charities have stepped in to plug the gaps left by the state but this is not an acceptable or sustainable way to address the growing prevalence of hunger”.
Does the Minister accept that his Government’s commitment to Brexit has led to increasing prices of food that is imported and has contributed to food poverty in the UK?
The hon. Gentleman will be well aware that food price inflation is not unique to the UK; it is a global phenomenon that we all face. Actually, food price inflation peaked at 19.2% in the EU and at 19.2% in the UK, so we are facing the same problems. However, we have provided more than £94 billion-worth of support precisely to help the most vulnerable in society.
There are many factors impacting food inflation, not least increasing global input costs, but surely the most important thing that my hon. Friend’s Department can do to shore up British agriculture and have a positive impact on food prices is to carry on, full speed ahead, getting the new trade deals that will see British first-class produce sold as a premium product worldwide.
My hon. Friend is absolutely correct. It is really important that we have support across the House for these important trade deals. They are good for the British economy, particularly good for British farmers, and good for prices in the UK. I hope, at some point, to see the Opposition parties supporting one of these important deals, which are transparently in the interests of British consumers in every nation and region of the United Kingdom.
I call the shadow Minister.
Since 2019, food prices in the UK have rocketed by 26%, a figure that is among the highest in the G7, yet the Prime Minister’s plans for new border checks on highly perishable food from Europe could push prices up again. A veterinary agreement would cut the cost of bringing food into Britain from Europe. Given that many families are already struggling to put enough food on the table and that every significant business organisation supports a veterinary agreement with the EU, why will the Secretary of State not take the sensible and pragmatic step of starting negotiations for such an agreement?
The hon. Gentleman will be aware that discussions are happening on an ongoing basis with the Foreign, Commonwealth and Development Office about the trade and co-operation agreement and other matters. We have very constructive dialogue with our EU partners. In fact, the Secretary of State and I had a meeting with the EU ambassadors just yesterday.
As for our achievements since leaving the EU, it is important to stress one thing: we have been laser-focused on making sure that the benefits are for the British consumers. We have got rid of thousands and thousands of tariffs. We have liberalised tariffs, reduced them or eliminated them altogether. For example, to compare us with the EU, 27% of the EU’s current external tariffs are zero-rated, whereas the proportion for the UK is 47%. We are significantly reducing tariffs, which is in the best interests of the British consumer, as a result of leaving the European Union.