Food and Beverage Business
General News

Food manufacturers to face scrutiny from Chancellor over exorbitant prices

Food manufacturers to face scrutiny from Chancellor over exorbitant prices Chancellor, food manufacturers, high prices Food and Beverage Business

The Chancellor will be holding a meeting with food manufacturers on May 23rd to address the increasing cost of food in the UK. In collaboration with Chief Secretary to the Treasury and the UK’s biggest supermarkets, the meeting will aim to investigate how food manufacturers can assist consumers.

As an important part of the supply chain for supermarkets, the Chancellor’s meeting with food manufacturers will provide key insights into the challenges that firms are facing as high prices continue to affect the economy. The food and drink manufacturing sector is the largest in the UK, employing almost half a million people.

On the same day, the Chancellor will also be speaking with the independent Competitions and Markets Authority (CMA) to discuss potential action in the road fuel and groceries markets in response to elevated prices. The CMA will examine ways to make it easier for consumers to compare products and the government will review pricing rules, including an update to the 2004 Price Marking Order after the CMA concludes its review.

Although UK food prices are in line with the EU average and inflation has decreased, food inflation continues to grow at 19.2%. This disproportionately impacts low-income households who must spend a larger portion of their income on food and may not be able to afford cheaper alternatives.

“The high food prices are proving stubborn so we need to understand what’s driving that,” said Chancellor of the Exchequer, Jeremy Hunt. “That’s why I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.”

The government has taken decisive actions to help households cope with increased prices, including freezing fuel duty, introducing the Energy Profits Levy, and implementing support packages worth £3,300 per household. Additionally, benefits and state pensions have increased by over 10%, direct cash payments are being made to vulnerable households, and the National Living Wage has been raised.

In response to high food prices, the government has implemented a range of support measures, such as the £2.5 billion Household Support Fund and the £200 million Holiday Activities and Food Programme. The expansion of Free School Meals to five-seven year-olds also provides additional support to vulnerable families.

Last week, the Prime Minister and Farming Secretary convened a meeting of representatives from across the food supply chain to strengthen the sector’s long-term resilience and sustainability and place farmers at the center of plans to grow the economy.

As food prices continue to be a concern for UK households, the government is taking action to support vulnerable families and collaborating with industry leaders to mitigate rising costs.

Related posts

Nestlé Considers Reductions in Sales Positions in France

FAB Team

Christeyns Food Hygiene acquires cleaning and disinfection partner

admin

David Flochel Named Chief Executive of Quorn

FAB Team