BREAKING

Brexit accounts for 6% of the food price increase in the UK

By Al Mayadeen English
Source: Agencies
1 Dec 2022 15:28

The UK's backing out of the EU has had repercussions for the economy that are exacerbating the situation even today.

Brexit has economic repercussions for the British working class.

Brexit accounted for an additional 6% increase in food prices in the UK from 2020-2021 due to non-tariff barriers on European Union goods, a policy that was implemented after the UK left the EU, according to a study by the Centre for Economic Performance (CEP) at the London School of Economics.

"In leaving the EU the UK swapped a deep trade relationship with few impediments to trade for a shallow one where tariffs are eliminated but 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 on to consumers: over the two years to the end of 2021, Brexit increased food prices by around 6% overall," the paper said.

The cost of food, according to the study, rose by 210 British pounds - or $250 - for every household, adding some 6 billion pounds to UK food bills over this period.

The CEP found that this food price increase led to rising living costs, affecting the poorer strata of society. Inflation across the UK reached 12.4% in November.

Christmas affordability

Recent research conducted by the Salvation Army suggests that two-thirds of adults are currently worried about being able to afford Christmas dinner.

According to the organization's survey, people are planning to use items from food banks for their festive meal. The findings pose as a "red flag" as poverty creeps further into communities.

Surveying 2,149 adults living in the UK on October 22, results showed that 67% of respondents were worried about their ability to afford a Christmas dinner in December.

The percentages of worried Britons rise to 81% among people aged 65 and above, with 80% of people living in east England. Around 16% of the respondents are expecting to use a food bank to get the ingredients for their meal. Furthermore, 38% believe they are likely to sip meals if they have an unexpected expense.

In addition, the poll found that 14% of respondents cannot afford to buy their children presents for Christmas, while almost 18% expect to spend Christmas in 'free' buildings so they can keep themselves warm.