Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Brexit added £210 to household food bills, new research finds

Brexit added £210 to household food bills, new research finds

Extra checks and requirements on goods crossing the border has increased food prices by 6% overall, says the Centre for Economic Performance.
Brexit added £210 to household food bills across the 24 months to the end of 2021, new research suggests.

Analysts from the Centre for Economic Performance (CEP) at the London School of Economics said extra checks and requirements on goods crossing the border has increased food prices by 6% overall, burning a £5.8bn hole in consumers' pockets.

The rising costs have likely hit poorer people harder, as those on low incomes tend to spend a greater share of their pay packets on food, the CEP found.

While the UK did not officially leave the EU until the start of 2021, the researchers said suppliers likely priced in the predicted disruption.

Although the Trade and Cooperation Agreement ensured trade between the UK and EU remained tariff free, the deal lacked "depth", with "non-tariff barriers" such as new customs checks impacting the price of moving goods.

It appears either EU exporters or UK importers, or both, are facing higher costs as a result of these new barriers, the CEP said, with between 50% and 88% of this burden passed on to consumers.

Data yesterday showed food inflation has reached a new high of 12.4%, driven by an increase in the cost of meat, dairy, eggs and coffee in particular.

Richard Davies, a professor at the University of Bristol and co-author of the study, said: "One factor in this high inflation has been the rise in non-tariff barriers for trade with the EU."

He added: "In leaving the EU, the UK swapped a deep trade relationship with few impediments to trade for one where a wide range of checks, forms and steps are required before goods can cross the border.

"Firms faced higher costs and passed most of these onto consumers. Over the two years to the end of 2021, Brexit increased food prices by around 6% overall."

'Stark policy implications'

Nikhil Datta, a fellow co-author on the CEP research, said the findings had "stark" policy implications.

"Non-tariff barriers are an important impediment to trade that should be a first-order concern, at least on par with tariffs, for policymakers interested in low consumer prices," he said.

The research comes amid growing calls for a new approach to Brexit after a series of bleak assessments about the impact it is having on the UK's finances.

Prime Minister Rishi Sunak has quashed reports of a closer alignment with the EU, while Labour leader Sir Keir Starmer has also ruled out a return to freedom of movement or a Swiss-style arrangement if he becomes PM.

During Prime Ministers Questions (PMQs) yesterday, SNP Westminster leader Ian Blackford branded the UK's departure from the European Union the "elephant in the room that neither the Tories or Labour are willing to confront".

He accused Sir Keir of trying to "out Brexit" the Conservatives, adding: "When will the prime minister finally see reality and admit that Brexit is a significant long-term cause of the UK economic crisis."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×