Government’s red tape driving up prices for food firms, warns Iceland
According to The Times, the company has warned of the cost burdens related to imposed restrictions on promoting foods that are high in fat, sugar and salt
The government’s red tape and regulations are “driving up” costs for British food businesses, Iceland has warned.
According to The Times, the company has warned of the cost burdens related to imposed restrictions on promoting foods that are high in fat, sugar and salt.
It also said the proposed post-Brexit border controls, including the Windsor framework, could damage the food industry.
In addition, the frozen food chain also warned that a new packaging recycling scheme that is due to start next April, is estimated to add a £1.7bn cost to businesses.
An Iceland spokeswoman told The Times: “The government is driving up costs … It is within [its] control to look at what individual departments are doing and pause, stop and rethink. Anything to reinforce the need for government to play a positive role — take action as opposed to hold meetings — in costs and ease of doing of business would help.”
It comes as Rishi Sunak was reportedly considering plans to ask retailers to cap prices on basic foods in an effort to reduce food inflation earlier this week.
After a sharp increase in the cost of living brought on by the war in Ukraine, Sunak has urged the Treasury to find measures to bring prices down.
Sunak’s plan is similar to the one in France, where retailers have pledged to freeze prices in a bid to create an “anti-inflation quarter”.
