London Daily

Focus on the big picture.
Friday, Aug 22, 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
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
×