London Daily

Focus on the big picture.
Saturday, Jul 12, 2025

Brexit impact on food prices 'very modest' - Tesco

Brexit impact on food prices 'very modest' - Tesco

Any changes to food prices after Brexit are likely to be "very modest indeed" under the deal struck between the UK and the EU, the chairman of Tesco has said.

John Allan told the BBC that it would "hardly be felt in terms of the prices that consumers are paying".

He said the deal was a "good outcome" and far better than no deal.

But he said the main benefit was that it removes a distraction from business and government.

When reports last month suggested that there might not be a post-Brexit trade deal, Mr Allan had warned that food prices could rise between 3% and 5%.

But he told BBC Radio 4's The World This Weekend that the deal agreed this week meant any noticeable changes in food costs for consumers were unlikely.

"The tariffs were the things that were going to generate the price increases," he said.

Prime Minister Boris Johnson has said the deal ensures "tariff-free" trade between the UK and EU.

Mr Allan said: "There'll be a little bit more administration associated with importing and exporting. But in absolute terms, I think that will hardly be felt in terms of the prices the consumers are paying."

He said UK companies would be able to cope with the additional work involved in the customs regime, with the possible exception of some small businesses.

But 70% of small businesses only trading with the EU, and not further afield, many of them may be dealing with customs paperwork for the first time, Mr Allan warned.

If the deal had not been struck, the Tesco chairman had previously suggested Brexit might change what Britons eat, as the prices of imported food such as brie cheese could have risen by up to 40%.



But Mr Allan suggested that Brexit would now only have a "marginal effect" on what shoppers put in their trolleys.

The deal should also make it easier for businesses to cope with some of the new customs issues between Great Britain and Northern Ireland.

Mr Allan said he was confident the deal "will not obstruct our ability to keep our NI supermarkets supplied".

"All the detail is not clear, but we were well set up, even if there was no deal, to continue to supply our NI supermarkets," he said. "I think that will be even easier now."

Any change to "intra-Ireland" trade, including agricultural businesses that operate north and south of the border, would be "marginal", he said.


John Allan was appointed Tesco chairman in March 2015

Mr Allan said he did not see any major advantages to the supermarket industry of any new freedoms as a result leaving the EU, however.

"Certainly Tesco - and I assume our competitors - we're very keen to maintain food standards," he said.

"We won't be seeking food from other countries that have different and potentially lower food standards than us, so I don't think it's going to make any material difference."

He suggested the main benefit to the UK government and business would be the removal of Brexit as "a major distraction" as the country tries to recover from the economic impact of the coronavirus crisis.

"It should enable us to address the challenges and opportunities our economy has got in a much more full-blooded way," Mr Allan said.

Newsletter

Related Articles

0:00
0:00
Close
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
×