London Daily

Focus on the big picture.
Friday, May 09, 2025

Brexit added £210 to household food bills, new research finds

Brexit added £210 to household food bills, new research finds

Extra checks and requirements on goods crossing the border has increased food prices by 6% overall, says the Centre for Economic Performance.
Brexit added £210 to household food bills across the 24 months to the end of 2021, new research suggests.

Analysts from the Centre for Economic Performance (CEP) at the London School of Economics said extra checks and requirements on goods crossing the border has increased food prices by 6% overall, burning a £5.8bn hole in consumers' pockets.

The rising costs have likely hit poorer people harder, as those on low incomes tend to spend a greater share of their pay packets on food, the CEP found.

While the UK did not officially leave the EU until the start of 2021, the researchers said suppliers likely priced in the predicted disruption.

Although the Trade and Cooperation Agreement ensured trade between the UK and EU remained tariff free, the deal lacked "depth", with "non-tariff barriers" such as new customs checks impacting the price of moving goods.

It appears either EU exporters or UK importers, or both, are facing higher costs as a result of these new barriers, the CEP said, with between 50% and 88% of this burden passed on to consumers.

Data yesterday showed food inflation has reached a new high of 12.4%, driven by an increase in the cost of meat, dairy, eggs and coffee in particular.

Richard Davies, a professor at the University of Bristol and co-author of the study, said: "One factor in this high inflation has been the rise in non-tariff barriers for trade with the EU."

He added: "In leaving the EU, the UK swapped a deep trade relationship with few impediments to trade for one where 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 onto consumers. Over the two years to the end of 2021, Brexit increased food prices by around 6% overall."

'Stark policy implications'

Nikhil Datta, a fellow co-author on the CEP research, said the findings had "stark" policy implications.

"Non-tariff barriers are an important impediment to trade that should be a first-order concern, at least on par with tariffs, for policymakers interested in low consumer prices," he said.

The research comes amid growing calls for a new approach to Brexit after a series of bleak assessments about the impact it is having on the UK's finances.

Prime Minister Rishi Sunak has quashed reports of a closer alignment with the EU, while Labour leader Sir Keir Starmer has also ruled out a return to freedom of movement or a Swiss-style arrangement if he becomes PM.

During Prime Ministers Questions (PMQs) yesterday, SNP Westminster leader Ian Blackford branded the UK's departure from the European Union the "elephant in the room that neither the Tories or Labour are willing to confront".

He accused Sir Keir of trying to "out Brexit" the Conservatives, adding: "When will the prime minister finally see reality and admit that Brexit is a significant long-term cause of the UK economic crisis."
Newsletter

Related Articles

0:00
0:00
Close
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
×