“Not for EU” Labelling

5. What recent estimate he has made with Cabinet colleagues of the cost to businesses of “Not for EU” labelling.

10. What recent estimate he has made with Cabinet colleagues of the cost to businesses of “Not for EU” labelling.

The Department engages regularly with UK industry to understand the impact of the Windsor framework, and we encourage businesses to respond to the consultation, which is still live.

During my various meetings, including at the UK corporate headquarters of Bidfood in my constituency, exasperated businesses have expressed serious concerns about the damage being inflicted on them by the Conservatives’ ill-thought-through “Not for EU” labelling scheme. Along with increasing consumer confusion, it will also likely reduce choice and raise prices for shoppers. Secretary of State, why are this incompetent Government so hellbent on burdening British businesses with more bureaucracy and red tape, and increasing their cost base?

First, let me say that there is a consultation taking place, so there is discussion on this. Secondly, £50 million has already been allocated as transitional support. Thirdly, particularly for colleagues in Northern Ireland, it is important that, far from restricting choice, we maintain it. That is exactly what the Windsor framework, which the House as a whole agreed to, is designed to do.

A correctly labelled shipment for Going Nuts, a firm in Park Royal, made it to Felixstowe on 2 January but, shockingly, it has only just been released from being impounded. That was due to a customs staff shortage at the border, so will the Government fix that? The company incurred a three-figure sum for 40 days’ storage, plus VAT. The Government are throwing small business under the bus—albeit a Sadiq Khan bus with low emissions.

I will leave it to others to deduce the link to Sadiq Khan’s bus. I think the hon. Lady prepared her question before the previous answer, because I just set out that we are giving £50 million of transitional labelling support. Of course, a consultation is live and we are working with businesses on it.

I call the Scottish National party spokesperson.

The Food and Drink Federation has warned the UK Government that their plan to require all meat and dairy sold in the UK to have “Not for EU” labelling attacked will divert “hundreds of millions of pounds” of investment away from the UK, and that several international investors have paused their plans to invest in UK food and drink. As we continue to circle the drain of Tory-imposed recession, will the Secretary of State tell the House and the public if driving investment away from this vital sector will help or hinder attempts to avoid yet greater recessions?

Of course we will work with industry on any changes, but the SNP needs to be consistent, because we have other proposals, such as the review of public sector procurement being carried out by my hon. Friend the Member for Colchester (Will Quince) and fairer labelling. For example, pigs reared overseas are often marketed as British bacon, and our labelling changes often have widespread support from the farming sector. It is important that we do these changes with the industry, which is why we have allocated £50 million of transitional support.