London Daily

Focus on the big picture.
Friday, Aug 01, 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
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
×