The cost of fruit and vegetables in the UK is set to rise by as much as 12% following new tax measures introduced in Chancellor Rachel Reeves's recent Budget.
The British Growers Association has expressed concerns that these changes, including a £40 billion tax hike and increased employer National Insurance contributions, will significantly impact production costs for growers, further straining an already pressured sector.
This increase comes on top of existing challenges such as soaring energy and fertiliser prices, which have placed immense financial strain on UK farmers.
Many growers fear these added costs will be passed down the supply chain, inevitably leading to higher prices on supermarket shelves. Leading retailers like Sainsbury's and Tesco have indicated they may have no choice but to reflect these increased costs in their pricing, despite efforts to keep food affordable for consumers.
The British Retail Consortium has forecasted a food price inflation rate of 4.2% by the end of the year, with fruit and vegetables among the categories most affected.
The rising cost of living continues to squeeze household budgets, leaving many shoppers worried about how they will manage their weekly grocery bills.
Experts advise consumers to shop around, take advantage of supermarket loyalty schemes, and consider buying store-brand products to offset the impact of these price hikes.
Meanwhile, growers are calling for more government support to ensure the sustainability of UK agriculture, warning that the current trajectory risks undermining the country’s food security.
With many consumers already struggling, the latest developments have reignited debates about the balance between sustainable taxation and protecting the affordability of essential goods.
Comments