Keir Starmer's Brexit reset deal with EU 'will push up cost of food and drink'
The UK government’s planned Brexit reset deal with the EU, expected to be finalized by mid-2027, will require British food and drink manufacturers to align over 400 regulations with EU laws, raising costs and potentially increasing checkout prices by 9% due to energy shocks. Industry leaders warn the rapid changes will strain supply chains, while the government insists the agreement will benefit the economy by £5 billion and reduce trade barriers for dairy, meat, and fish products.
The UK government’s upcoming Brexit reset deal with the EU, set for finalization at a summit in the summer, will force British food and drink manufacturers to adopt over 400 EU regulations. The Food and Drink Federation warns this will increase costs for businesses already struggling with inflation, as they must adjust supply chains and operations to comply with Brussels’ laws. The government expects the Sanitary and Phytosanitary (SPS) agreement to eliminate paperwork and physical checks for dairy, fish, cheese, eggs, and fresh red meat, boosting the UK economy by £5 billion. Industry leaders argue the changes will worsen inflation, with checkout prices for food and drink forecast to rise by 9% due to soaring energy bills linked to the Iran conflict. Karen Betts, CEO of the Food and Drink Federation, highlighted new regulations like Extended Producer Responsibility (EPR), which imposes £1.4 billion in annual recycling fees on producers. She also criticized the government’s push for further restrictions on high-salt and high-sugar foods, despite recent rules taking effect in January. The government insists the agreement will take effect by mid-2027, despite industry pleas for a two-year transition period. A Department for Environment, Food and Rural Affairs (DEFRA) statement acknowledged concerns but emphasized ongoing consultations to ensure a smooth adjustment. Shadow Environment Secretary Victoria Atkins accused Prime Minister Keir Starmer of reviving Brexit divisions, warning that the deal could deepen regulatory burdens on businesses. The SPS agreement aims to streamline trade by removing checks on key food exports, but manufacturers fear compliance costs will offset long-term savings. Betts stated that overlapping regulatory changes—including EPR and new food restrictions—will further strain companies already battling inflation. The government’s timeline remains firm, with DEFRA reiterating its commitment to the 2027 implementation date.
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