British households have paid £7bn since Brexit to cover the extra cost of trade barriers on food imports from the EU, according to researchers at the London School of Economics (LSE).

The university’s latest report estimating the impact of leaving the bloc on UK food prices found that trade barriers were consistently hampering imports, pushing up bills by an average £250.

The cost of food in the UK had rocketed by 25% since 2019, the researchers calculated, but if the post-Brexit trade restrictions were not in place then this increase would be only 17% – nearly a third lower.

Adding up the impact on all British households suggested they had paid an extra £6.95bn as a consequence, they said.

“Between December 2019 and March 2023 food prices rose by almost 25%. This analysis suggests that in the absence of Brexit this figure would be 8 percentage points (30%) lower,” the report found.

Last year, the LSE centre for economic performance said that leaving the EU added an average of £210 to household food bills over the two years to the end of 2021, at a cost of £5.8bn.

The UK has the highest food inflation rate in the industrialised world, according to recent inflation data.

In the latest figures from the Office for National Statistics, the consumer prices index measure of inflation fell to 8.7% in April from 10.1% in March, but food inflation over the past year remained elevated at 19%.

Brexit trade barriers include extra paperwork to validate goods and veterinary checks on livestock.

Nikhil Datta, one of the report’s authors, said it was possible food costs would continue to spiral.

“Not everything has been instituted at the border. For instance, not all veterinary checks are being carried out,” he said.

The obvious answer is to buy produce from places other than the EU.

We had a superb arrangement with Australia, New Zealand, South Africa, and
Canada, but joining the EU screwed that right up.

PS: What was the bill for supporting inefficient French farmers, for all
those decades?

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> British households have paid £7bn since Brexit to cover the extra cost of
> trade barriers on food imports from the EU, according to researchers at
> the London School of Economics (LSE).
>
> The university’s latest report estimating the impact of leaving the bloc
> on UK food prices found that trade barriers were consistently hampering
> imports, pushing up bills by an average £250.
>
> The cost of food in the UK had rocketed by 25% since 2019, the
> researchers calculated, but if the post-Brexit trade restrictions were
> not in place then this increase would be only 17% – nearly a third lower.
>
> Adding up the impact on all British households suggested they had paid an
> extra £6.95bn as a consequence, they said.
>
> “Between December 2019 and March 2023 food prices rose by almost 25%.
> This analysis suggests that in the absence of Brexit this figure would be
> 8 percentage points (30%) lower,” the report found.
>
> Last year, the LSE centre for economic performance said that leaving the
> EU added an average of £210 to household food bills over the two years to
> the end of 2021, at a cost of £5.8bn.
>
> The UK has the highest food inflation rate in the industrialised world,
> according to recent inflation data.
>
> In the latest figures from the Office for National Statistics, the
> consumer prices index measure of inflation fell to 8.7% in April from
> 10.1% in March, but food inflation over the past year remained elevated at 19%.
>
> Brexit trade barriers include extra paperwork to validate goods and
> veterinary checks on livestock.
>
> Nikhil Datta, one of the report’s authors, said it was possible food
> costs would continue to spiral.
>
> “Not everything has been instituted at the border. For instance, not all
> veterinary checks are being carried out,” he said.
>

--
Spike

The impact of the vote to leave the European Union continues to be felt, with food inflation soaring to 17.2% and an expert from the Bank of England is in no doubt over what’s to blame.

Overall inflation on food and drink at supermarkets continued to rise in March to 17.2%, up from 16.5% the month before, inflation figures from Which? have found.

The analysis also revealed that the prices of cheddar cheese, white bread and porridge oats are up by as much as 80%.

Supermarket food and drink prices continued to rise in March, costing on average 17.2% more than in March 2022. However, some items rose far more than that.

Which? states: “Cheddar cheese, for example, increased by an average 28.3% across all the supermarkets in the three months to March 2023, compared to the same period the year before. But the worst example in our basket, Dragon Welsh Mature Cheddar 180g at Asda, went from £1 to £1.80 – an increase of 80% year on year.

“The cost of porridge oats went up by an average of 35.5% but the worst example was at Ocado where Quaker Oat So Simple Protein Porridge Pot Original 49g went from 94p to £1.56 – an increase of 65.5%.

“When we looked at large sliced white bread we found average increases of 22.8%. The Bakery at Asda Soft White Medium Sliced Bread 800g, however, went from 56p to 94p (an increase of 67%).”

The current cause of soaring food inflation, which has seen prices reach a 45 year high, can be put down to Brexit, a Bank of England expert has said.

Policy maker Catherine Mann, an external member of the Monetary Policy Committee, said that the costly red tape following Brexit had significantly impacted exporters from the EU who had stopped participating in that ‘traded marketplace’.

“The smaller exporters which provided additional supply, additional competitive pricing, what we have observed is those smaller exporters from the EU into the UK really have exited from participating in that traded marketplace,” she said previously.

“It gets too expensive to get over the red tape and so forth, so that’s an important ingredient.”

When reading the report below, keep in mind that the Eurozone has just
moved into a recession, variously caused by high food and fuel prices
combined with sluggish consumer spending and rising interest rates.

Had we stayed in the EU, we would be as badly off as the EU, with only
commissar diktat to tell us what to do.

The UK has avoided a doom-monger-predicted recession and so are better
placed economically.

If trade with Europe is sluggish, it’s because they aren’t spending but
saving instead.

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> The impact of the vote to leave the European Union continues to be felt,
> with food inflation soaring to 17.2% and an expert from the Bank of
> England is in no doubt over what’s to blame.
>
> Overall inflation on food and drink at supermarkets continued to rise in
> March to 17.2%, up from 16.5% the month before, inflation figures from Which? have found.
>
> The analysis also revealed that the prices of cheddar cheese, white bread
> and porridge oats are up by as much as 80%.
>
> Supermarket food and drink prices continued to rise in March, costing on
> average 17.2% more than in March 2022. However, some items rose far more than that.
>
> Which? states: “Cheddar cheese, for example, increased by an average
> 28.3% across all the supermarkets in the three months to March 2023,
> compared to the same period the year before. But the worst example in our
> basket, Dragon Welsh Mature Cheddar 180g at Asda, went from £1 to £1.80 –
> an increase of 80% year on year.
>
> “The cost of porridge oats went up by an average of 35.5% but the worst
> example was at Ocado where Quaker Oat So Simple Protein Porridge Pot
> Original 49g went from 94p to £1.56 – an increase of 65.5%.
>
> “When we looked at large sliced white bread we found average increases of
> 22.8%. The Bakery at Asda Soft White Medium Sliced Bread 800g, however,
> went from 56p to 94p (an increase of 67%).”
>
> The current cause of soaring food inflation, which has seen prices reach
> a 45 year high, can be put down to Brexit, a Bank of England expert has said.
>
> Policy maker Catherine Mann, an external member of the Monetary Policy
> Committee, said that the costly red tape following Brexit had
> significantly impacted exporters from the EU who had stopped
> participating in that ‘traded marketplace’.
>
> “The smaller exporters which provided additional supply, additional
> competitive pricing, what we have observed is those smaller exporters
> from the EU into the UK really have exited from participating in that
> traded marketplace,” she said previously.
>
> “It gets too expensive to get over the red tape and so forth, so that’s
> an important ingredient.”
>

--
Spike

New research by the London School of Economics (LSE) has revealed that British households have incurred a £7 billion ($8 billion) cost since Brexit due to trade barriers affecting food imports from the EU.

The LSE's latest report on the impact of leaving the EU indicates that trade barriers have consistently hindered imports, resulting in an average increase of £250 ($308) in household bills alone.

While the researchers calculated that the cost of food in the UK has surged by 25% since 2019, they believe this increase would have been reduced by nearly a third, reaching only 17%, if the post-Brexit trade restrictions hadn’t been in place.

Largely, these restrictions involve additional paperwork to verify goods and veterinary checks on livestock.

Recent inflation data from the Office for National Statistics indicates that the UK has the highest food inflation rate among industrialized nations.

Although the consumer prices index measure of inflation decreased to 8.7% in April from 10.1% in March, food inflation has remained high at 19% over the past year.

Nikhil Datta, one of the authors of the report, expressed concern that food costs may continue to rise.

“Not everything has been instituted at the border,” said Datta. “For instance, not all veterinary checks are being carried out..

“It could be that there will be no adjustment in prices when they do take effect because businesses have already accounted for the extra costs.. Or the extra barriers, when they come into effect, do increase prices and householders will face a further increase in their food costs.”

Another recent report by the Centre for European Reform discovered Brexit has cost the UK £33 billion ($40 billion) in lost trade and investment already, confirming the economic damage is worse than previously feared.

Prime Minister Rishi Sunak's spokesperson dismissed criticism from notable eurosceptic politicians regarding Brexit last week, stating that Britain's departure from the European Union had not been a failure.

EVEN FARAGE SAYS IT IS.

Food price inflation has helped to push the Eurozone into recession,
currently thought to last up to two years. The ECB has been criticised for
constantly getting its forecasts wrong and so wrong-footing businesses.

The UK is not in recession and doesn’t give tuppence for what the EU does
about it.

The EU: home of ignorant dreamers…

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> New research by the London School of Economics (LSE) has revealed that
> British households have incurred a £7 billion ($8 billion) cost since
> Brexit due to trade barriers affecting food imports from the EU.
>
> The LSE's latest report on the impact of leaving the EU indicates that
> trade barriers have consistently hindered imports, resulting in an
> average increase of £250 ($308) in household bills alone.
>
> While the researchers calculated that the cost of food in the UK has
> surged by 25% since 2019, they believe this increase would have been
> reduced by nearly a third, reaching only 17%, if the post-Brexit trade
> restrictions hadn’t been in place.
>
> Largely, these restrictions involve additional paperwork to verify goods
> and veterinary checks on livestock.
>
> Recent inflation data from the Office for National Statistics indicates
> that the UK has the highest food inflation rate among industrialized nations.
>
> Although the consumer prices index measure of inflation decreased to 8.7%
> in April from 10.1% in March, food inflation has remained high at 19% over the past year.
>
> Nikhil Datta, one of the authors of the report, expressed concern that
> food costs may continue to rise.
>
> “Not everything has been instituted at the border,” said Datta. “For
> instance, not all veterinary checks are being carried out.
>
> “It could be that there will be no adjustment in prices when they do take
> effect because businesses have already accounted for the extra costs. Or
> the extra barriers, when they come into effect, do increase prices and
> householders will face a further increase in their food costs.”
>
> Another recent report by the Centre for European Reform discovered Brexit
> has cost the UK £33 billion ($40 billion) in lost trade and investment
> already, confirming the economic damage is worse than previously feared.
>
> Prime Minister Rishi Sunak's spokesperson dismissed criticism from
> notable eurosceptic politicians regarding Brexit last week, stating that
> Britain's departure from the European Union had not been a failure.
>
> EVEN FARAGE SAYS IT IS.
>

--
Spike

Leaving the European Union (EU) added an average of £210 to household food bills over the two years to the end of 2021, costing UK consumers a total of £5.8 billion, new research from the Centre for Economic Performance (CEP) at the London School of Economics finds.

And since low-income households spend a greater share of their income on food than richer families, these Brexit-driven price rises had a proportionately greater impact on the poorest people.

A previous report by CEP researchers found that leaving the EU increased the price of food products by six per cent.

The latest study - Non-tariff barriers and consumer prices: Evidence from Brexit - confirms that food prices increased by six per cent and finds that for the poorest households, this feeds through into a Brexit-induced rise in the overall cost of living of 1.1 per cent - 52 per cent more than the 0.7 per cent rise felt in the top 10 per cent of households.

The authors also look in depth at the mechanisms behind the price rises. The EU is, the researchers point out, a “deep” trading bloc. It goes far beyond the elimination of tariffs within its borders: it also minimises non-tariff barriers (NTB) to trade through, for example, mutual recognition of standards.

While the Trade and Cooperation Agreement, which came into force in January 2021, ensures that trade between the UK and the EU remains tariff-free, it lacks the depth of the EU. This means there are now, post-Brexit, more NTBs between the UK and the EU. These include new comprehensive customs checks, rules of origin requirements and sanitary and phytosanitary measures for trade in animals and plants.

The authors find that it is these NTBs that have affected prices. The rise in consumer prices was driven only by products with high NTBs and there was no significant rise in prices for products with low NTBS – suggesting that EU exporters and/or UK importers face higher costs due to these new barriers and between 50 per cent and 88 per cent of these costs have been passed on to consumers.

The changes have benefitted domestic producers of food, who now have less competition from European imports. But the gains to domestic firms are outstripped by the loss to domestic consumers by more than £1 billion. Additionally, unlike regular tariffs, NTBs do not generate any revenue for the government.

Richard Davies, an associate of CEP’s growth programme and a professor at Bristol University and study co-author, said: “The UK inflation rate rose above 11 per cent in 2022, the highest rate in 40 years. Many factors, affecting both supply and demand for goods and services, are involved. One factor in this high inflation has been the rise in non-tariff barriers for trade with the EU.

“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 six per cent overall.”

Nikhil Datta, an associate of CEP’s labour markets programme and an assistant professor of economics at Warwick University and study co-author, said: “The policy implications are stark: 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.

“We calculate that Brexit caused a loss of £210 for the average household, or £5.84 billion overall, when looking at its impact on the food market alone. Since poorer households spend a larger fraction of their income on food, they are hit harder.”

Just think - if you can - how much worse it would have been had we stayed
in the EU, what with them being in a two-year recession and with sluggish
industrial activity.

We aren’t in a recession…🤭

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> Leaving the European Union (EU) added an average of £210 to household
> food bills over the two years to the end of 2021, costing UK consumers a
> total of £5.8 billion, new research from the Centre for Economic
> Performance (CEP) at the London School of Economics finds.
>
> And since low-income households spend a greater share of their income on
> food than richer families, these Brexit-driven price rises had a
> proportionately greater impact on the poorest people.
>
> A previous report by CEP researchers found that leaving the EU increased
> the price of food products by six per cent.
>
> The latest study - Non-tariff barriers and consumer prices: Evidence from
> Brexit - confirms that food prices increased by six per cent and finds
> that for the poorest households, this feeds through into a Brexit-induced
> rise in the overall cost of living of 1.1 per cent - 52 per cent more
> than the 0.7 per cent rise felt in the top 10 per cent of households.
>
> The authors also look in depth at the mechanisms behind the price rises.
> The EU is, the researchers point out, a “deep” trading bloc. It goes far
> beyond the elimination of tariffs within its borders: it also minimises
> non-tariff barriers (NTB) to trade through, for example, mutual recognition of standards.
>
> While the Trade and Cooperation Agreement, which came into force in
> January 2021, ensures that trade between the UK and the EU remains
> tariff-free, it lacks the depth of the EU. This means there are now,
> post-Brexit, more NTBs between the UK and the EU. These include new
> comprehensive customs checks, rules of origin requirements and sanitary
> and phytosanitary measures for trade in animals and plants.
>
> The authors find that it is these NTBs that have affected prices. The
> rise in consumer prices was driven only by products with high NTBs and
> there was no significant rise in prices for products with low NTBS –
> suggesting that EU exporters and/or UK importers face higher costs due to
> these new barriers and between 50 per cent and 88 per cent of these costs
> have been passed on to consumers.
>
> The changes have benefitted domestic producers of food, who now have less
> competition from European imports. But the gains to domestic firms are
> outstripped by the loss to domestic consumers by more than £1 billion.
> Additionally, unlike regular tariffs, NTBs do not generate any revenue for the government.
>
> Richard Davies, an associate of CEP’s growth programme and a professor at
> Bristol University and study co-author, said: “The UK inflation rate rose
> above 11 per cent in 2022, the highest rate in 40 years. Many factors,
> affecting both supply and demand for goods and services, are involved.
> One factor in this high inflation has been the rise in non-tariff
> barriers for trade with the EU.
>
> “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 six per cent overall.”
>
> Nikhil Datta, an associate of CEP’s labour markets programme and an
> assistant professor of economics at Warwick University and study
> co-author, said: “The policy implications are stark: 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.
>
> “We calculate that Brexit caused a loss of £210 for the average
> household, or £5.84 billion overall, when looking at its impact on the
> food market alone. Since poorer households spend a larger fraction of
> their income on food, they are hit harder.”
>

--
Spike

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."

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."

The Eurozone is in trouble, having entered a recession that is expected to
last for two years. Food and fuel prices combine with increasing interest
rates, sluggish industrial activity, and consumer spending that is falling
in favour of savings have brought this about. None of this was due to
Brexit.

The UK is not in recession, perhaps due to Brexit.

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> 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."
>
> 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."
>

--
Spike

Trade barriers related to Brexit have added £250 to the cost of food for every UK household since December 2019, according to a new report from the London School of Economics (LSE).

LSE’s research – entitled ‘Brexit and consumer food prices’ – found that prices rose by 25% from January 2021 until March of this year, as £6.95bn was added to food costs as a result of the additional trade barriers.

If these obstacles were not in place costs would have only gone up by 17%, according to LSE.
Barriers

The Guardian reports that these barriers include extra paperwork to validate goods and veterinary checks on livestock.

Nikhil Datta, one of the report’s authors, said it was possible food costs would continue to spiral.

“Not everything has been instituted at the border. For instance, not all veterinary checks are being carried out,” he commented.
Food prices still soaring

The IMF has urged the UK government to lower non-tariff trade barriers to reduce inflation, as previously covered in the IOE&IT Daily Update.

Although the base rate of inflation fell to 8.7% in April, food price rises are running even higher at more than 17%, prompting chancellor Jeremy Hunt to ask food producers to do more to “ease the pressure on consumers”.

He also raised the prospect that the government could impose tough new pricing rules, depending on the results of an ongoing investigation by the Competition and Market Authority.

Industry sources rejected Treasury claims and told the Times that they had absorbed 80% of the cost increases they had faced from pricier energy, transport and labour.
Migration supplies workers

With the government’s latest figures for net migration up 20% to a record level of 606,000, Sky reports that businesses are making use of the new post-Brexit migration system to bring in skilled migrants such as IT professionals, nurses and accountants.

Since January 2021, the new system has made it easier for workers outside of Europe to enter the UK, even though the fees for businesses are high.

While the number of European migrants has fallen in recent years, this has been more than offset by a big rise in migrants from countries such as India, South Africa and Ghana.

Isn’t it strange, therefore, that businesses in the EU, seem to be far less
affected by exactly the same set of rules?

There is a manufacturer of bicycles in Germany that exports to the UK
without problems, and even manages to sell their machines here at
pre-Brexit prices!

Now, as the arrangements are the same for both sides, why is it that the UK
businesses are snivelling and whining and going bust, while the EU get on
with things?

BTW, it was you yourself that posted the article regarding the German
bicycle manufacturer.

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> Trade barriers related to Brexit have added £250 to the cost of food for
> every UK household since December 2019, according to a new report from
> the London School of Economics (LSE).
>
> LSE’s research – entitled ‘Brexit and consumer food prices’ – found that
> prices rose by 25% from January 2021 until March of this year, as £6.95bn
> was added to food costs as a result of the additional trade barriers.
>
> If these obstacles were not in place costs would have only gone up by
> 17%, according to LSE.
> Barriers
>
> The Guardian reports that these barriers include extra paperwork to
> validate goods and veterinary checks on livestock.
>
> Nikhil Datta, one of the report’s authors, said it was possible food
> costs would continue to spiral.
>
> “Not everything has been instituted at the border. For instance, not all
> veterinary checks are being carried out,” he commented.
> Food prices still soaring
>
> The IMF has urged the UK government to lower non-tariff trade barriers to
> reduce inflation, as previously covered in the IOE&IT Daily Update.
>
> Although the base rate of inflation fell to 8.7% in April, food price
> rises are running even higher at more than 17%, prompting chancellor
> Jeremy Hunt to ask food producers to do more to “ease the pressure on consumers”.
>
> He also raised the prospect that the government could impose tough new
> pricing rules, depending on the results of an ongoing investigation by
> the Competition and Market Authority.
>
> Industry sources rejected Treasury claims and told the Times that they
> had absorbed 80% of the cost increases they had faced from pricier
> energy, transport and labour.
> Migration supplies workers
>
> With the government’s latest figures for net migration up 20% to a record
> level of 606,000, Sky reports that businesses are making use of the new
> post-Brexit migration system to bring in skilled migrants such as IT
> professionals, nurses and accountants.
>
> Since January 2021, the new system has made it easier for workers outside
> of Europe to enter the UK, even though the fees for businesses are high.
>
> While the number of European migrants has fallen in recent years, this
> has been more than offset by a big rise in migrants from countries such
> as India, South Africa and Ghana.
>

--
Spike

Most voters think Brexit is to blame for widespread shortages of fruit and vegetables on supermarket shelves, a poll for The Independent has found.

The majority of the public (57 per cent) said Britain’s exit from the EU was behind the lack of fresh produce, according to the Savanta survey..

Only one in three (36 per cent) said Brexit was not to blame. The poll also discovered 57 per cent had been affected by shortages while 40 per cent were unaffected.

Unusual weather which has hurt crops in Spain and north Africa has been blamed for UK shelves being short of tomatoes and other fresh produce.

But farming campaigners and food experts have pointed to Brexit for the particularly acute shortage in Britain – describing the idea of Spanish weather being solely to blame as “absolute nonsense”.

It comes as The Independent revealed that millions of pupils face missing out on fresh fruit and vegetables after the food shortages hit school meals.

School meal providers say items such as lettuce, tomatoes and cucumbers are among the items off the menu due to “extreme shortages” and “unviable costs”, with ministers now working with schools to try to minimise the impact.

In an email sent to primary schools, meals provider Caterlink, which provides more than a million meals a week to 1,300 schools, said certain fresh goods would not be available for two weeks from 1 March.

The obvious answer is to buy produce from places other than the EU.

We had a superb arrangement with Australia, New Zealand, South Africa, and
Canada, but joining the EU screwed that right up.

PS: What was the bill for supporting inefficient French farmers, for all
those decades?

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> Most voters think Brexit is to blame for widespread shortages of fruit
> and vegetables on supermarket shelves, a poll for The Independent has found.
>
> The majority of the public (57 per cent) said Britain’s exit from the EU
> was behind the lack of fresh produce, according to the Savanta survey.
>
> Only one in three (36 per cent) said Brexit was not to blame. The poll
> also discovered 57 per cent had been affected by shortages while 40 per
> cent were unaffected.
>
> Unusual weather which has hurt crops in Spain and north Africa has been
> blamed for UK shelves being short of tomatoes and other fresh produce.
>
> But farming campaigners and food experts have pointed to Brexit for the
> particularly acute shortage in Britain – describing the idea of Spanish
> weather being solely to blame as “absolute nonsense”.
>
> It comes as The Independent revealed that millions of pupils face missing
> out on fresh fruit and vegetables after the food shortages hit school meals.
>
> School meal providers say items such as lettuce, tomatoes and cucumbers
> are among the items off the menu due to “extreme shortages” and “unviable
> costs”, with ministers now working with schools to try to minimise the impact.
>
> In an email sent to primary schools, meals provider Caterlink, which
> provides more than a million meals a week to 1,300 schools, said certain
> fresh goods would not be available for two weeks from 1 March.
>

--
Spike

Britain's departure from the European Union has accounted for about a third of the increase in food bills for households since 2019, equivalent to about 250 pounds ($316), researchers from the London School of Economics and other universities said.

Britain has been battling inflation for over a year, partly driven by its highest rate of food price growth since 1977, with food prices up more than 19% over the last year.

Although London and Brussels have an agreement allowing largely tariff-free trade in goods, barriers to exports and imports in the form of paperwork, known as non-tariff barriers, have caused delays and higher costs.

The Centre for Economic Performance (CEP) study compared price changes for food products imported from the European Union with prices of food from further afield.

Before Brexit these products had similar price trends but after Brexit, there was a relative increase for products more exposed to imports from the EU, it said, and that has continued into 2023.

The study found that between January 2022 and March 2023, the price of food products that were exposed to Brexit increased by approximately 3.5 percentage points more than those that were not.

When considering the impact on food prices since December 2019, just before Britain formally left the EU, they estimated the cost of Brexit to UK households at 6.95 billion pounds ($8.77 billion), or 250 pounds per household.

Between December 2019 and March 2023, it said UK food prices rose by almost 25 percentage points.

"Our analysis suggests that, in the absence of Brexit, this figure would be 8 percentage points (30%) lower," the CEP said.

Products with high non-tariff barriers, such as meat and cheese imported from the EU, saw price increases about 10 percentage points higher than similar products that were not exposed to Brexit since January 2021, when Britain's trade and cooperation (TCA) agreement with the EU started.

Last week Prime Minister Rishi Sunak's spokesperson said Britain's departure from the European Union had not been a failure, rebuffing criticism from prominent eurosceptic politicians about how Brexit had been implemented.

Overall British consumer price inflation hit a more-than 40-year high of 11..1% in October, according to official data. It had slowed to 8.7% in April.

The obvious answer is to buy produce from places other than the EU.

We had a superb arrangement with Australia, New Zealand, South Africa, and
Canada, but joining the EU screwed that right up.

PS: What was the bill for supporting inefficient French farmers, for all
those decades?

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> Britain's departure from the European Union has accounted for about a
> third of the increase in food bills for households since 2019, equivalent
> to about 250 pounds ($316), researchers from the London School of
> Economics and other universities said.
>
> Britain has been battling inflation for over a year, partly driven by its
> highest rate of food price growth since 1977, with food prices up more
> than 19% over the last year.
>
> Although London and Brussels have an agreement allowing largely
> tariff-free trade in goods, barriers to exports and imports in the form
> of paperwork, known as non-tariff barriers, have caused delays and higher costs.
>
> The Centre for Economic Performance (CEP) study compared price changes
> for food products imported from the European Union with prices of food from further afield.
>
> Before Brexit these products had similar price trends but after Brexit,
> there was a relative increase for products more exposed to imports from
> the EU, it said, and that has continued into 2023.
>
> The study found that between January 2022 and March 2023, the price of
> food products that were exposed to Brexit increased by approximately 3.5
> percentage points more than those that were not.
>
> When considering the impact on food prices since December 2019, just
> before Britain formally left the EU, they estimated the cost of Brexit to
> UK households at 6.95 billion pounds ($8.77 billion), or 250 pounds per household.
>
> Between December 2019 and March 2023, it said UK food prices rose by
> almost 25 percentage points.
>
> "Our analysis suggests that, in the absence of Brexit, this figure would
> be 8 percentage points (30%) lower," the CEP said.
>
> Products with high non-tariff barriers, such as meat and cheese imported
> from the EU, saw price increases about 10 percentage points higher than
> similar products that were not exposed to Brexit since January 2021, when
> Britain's trade and cooperation (TCA) agreement with the EU started.
>
> Last week Prime Minister Rishi Sunak's spokesperson said Britain's
> departure from the European Union had not been a failure, rebuffing
> criticism from prominent eurosceptic politicians about how Brexit had been implemented.
>
> Overall British consumer price inflation hit a more-than 40-year high of
> 11.1% in October, according to official data. It had slowed to 8.7% in April.
>

--
Spike

A storm broke out on Twitter this week when users posted images of supermarket shelves in the likes of Spain and France laden with fruit and veg compared to the empty fresh produce aisles in Britain. So severe are the shortages in the UK that some supermarkets have been forced to impose limits on the amount of salad products consumers can buy. Brexiteers took offence to the posts, claiming ‘Remoaners are at it again’ and are ‘ridiculously blaming Brexit.’

‘Blame it on Brexit’ is a popular snipe made by many a Leave voter to mockingly suggest Remainers blame everything that is going wrong in Britain on our departure from the EU. The trouble is that many of the country’s woes, such as lagging behind our peers in trade and investment, is the blame of Brexit, as economists have warned.

And none more so than our bare supermarket shelves.

Here’s how.

1- Morocco restricts it exports to the UK, post-Brexit

In October 2019, Britain signed a trade deal with Morocco. However, the agreement is not as valuable to Moroccans as the EU-Morocco Association Agreement, which came into force in 2000. The deal set up a free trade area between Morocco and the 27 EU countries. Hence the EU is Morocco’s largest trade partner and the country prioritises sending its surplus tomatoes to EU countries. Post-Brexit, Morocco made the decision to restrict supplies to Britain to in an attempt to control prices.

2- Labour shortages

But we’ve got loads of polytunnels in sunny Kent which supply the supermarkets with produce, so why would we need to import tomatoes anyway, is another popular argument made by Brexit defenders. While fields of polytunnels might be a common sight in southern regions of England, they are not working to capacity because many EU workers have gone home. Why have they gone home? Before Brexit, free movement legislation meant that citizens from the EU had the right to live and work in the UK without requiring permission. This all changed on January 1, 2020, when free movement ended, meaning workers from the EU now face more restrictive immigration rules. A major report from ReWAGE and the Migration Observatory at the University of Oxford in May 2022, showed that the end of free movement has exacerbated the recruiting issues many UK employers face.

3- Spanish growers blame associated Brexit costs and red tape

Spain is the UK’s biggest foreign supplier of fresh fruit and vegetables. But additional paperwork and costs post Brexit has made the UK a less desirable market, some fruit and vegetable producers in Spain claim. Alfonso Galvez, general secretary of the Murcia brand of Asaja, Spain’s largest farming association, says the current shortages in the UK may have more to do with logistics and bureaucracy than the weather, which some growers – and much of the media – are pinning the shortages on..

“There have been logistics and transport problems when it comes to export, such as a shortage of lorry drivers to service the UK market, and the problems we’ve seen with the queues to get into the country through Eurotunnel,” said Galvez. “On top of that, you’ve got the costs of all this bureaucracy and all these waits, which mean that perhaps the UK market isn’t so attractive,” he added.

4- Greenhouses too expensive to heat because of high energy costs

In October 2021, the UK’s biggest tomato supplier shut its greenhouses due to soaring gas prices. Phil Pearson, group development director and head grower at APS Group – which supplies around 40% of Britain’s tomatoes – said: “I am really very worried for the future of UK food production in 2022.”

There will be “empty shelves” Pearson warned, as the company’s energy costs had increased between six to seven fold. “The result of the gas prices mean, as an industry, we’re going to have less British tomatoes next year,” he added.

Fast-forward 18 months and energy prices have rocketed further. But how is this related to Brexit? During the EU referendum campaign, Boris Johnson and Michael Gove promised cheaper household gas bills, if Britons backed Brexit. Energy prices might also be at record highs in Europe, but the countries in the EU’s internal energy market trade efficiently with one another via linked auctions that balance prices across the EU. In theory, having no ties to auctions from Europe, Britain could enjoy cheaper prices than elsewhere, if energy was cheap. However it isn’t, so the UK is exposed to higher prices.

This week, Liz Webster of Save British Food called for an urgent return of free trade with Europe to keep supermarket shelves in Britain stocked. Talking to LBC, Webster said tomato growers in glass houses in the UK have shut down, as a “result of energy costs that are higher than the rest of Europe.”

5- Supply chain inefficiency

Supply chain inefficiency post-Brexit has been attributed to the shortages of tomatoes and other fruit and vegetables.

Ksenija Simovic, a senior policy adviser at Copa-Cogeca, a group which represents farmers and farming co-operatives in the EU, said Brexit certainly hadn’t helped Britain and its supply chain issues. According to Simovic, if there is a shortage of supply then the produce that is available is simply more likely to remain within the Single Market.

“It doesn’t help that the UK is out of the EU and single market, but I don’t think this is the primary reason the UK is having shortages,” she said.

Bring on the turnips

Meanwhile, as experts warn supermarket stocks ‘may be low for a month,’ the environment secretary Therese Coffey has come up with a solution – people should eat more homegrown food like turnips so we are less reliant on imported products.

“I am really very worried for the future of UK food production in 2022.”

How did that work out?

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> A storm broke out on Twitter this week when users posted images of
> supermarket shelves in the likes of Spain and France laden with fruit and
> veg compared to the empty fresh produce aisles in Britain. So severe are
> the shortages in the UK that some supermarkets have been forced to impose
> limits on the amount of salad products consumers can buy. Brexiteers took
> offence to the posts, claiming ‘Remoaners are at it again’ and are
> ‘ridiculously blaming Brexit.’
>
> ‘Blame it on Brexit’ is a popular snipe made by many a Leave voter to
> mockingly suggest Remainers blame everything that is going wrong in
> Britain on our departure from the EU. The trouble is that many of the
> country’s woes, such as lagging behind our peers in trade and investment,
> is the blame of Brexit, as economists have warned.
>
> And none more so than our bare supermarket shelves.
>
> Here’s how.
>
> 1- Morocco restricts it exports to the UK, post-Brexit
>
> In October 2019, Britain signed a trade deal with Morocco. However, the
> agreement is not as valuable to Moroccans as the EU-Morocco Association
> Agreement, which came into force in 2000. The deal set up a free trade
> area between Morocco and the 27 EU countries. Hence the EU is Morocco’s
> largest trade partner and the country prioritises sending its surplus
> tomatoes to EU countries. Post-Brexit, Morocco made the decision to
> restrict supplies to Britain to in an attempt to control prices.
>
> 2- Labour shortages
>
> But we’ve got loads of polytunnels in sunny Kent which supply the
> supermarkets with produce, so why would we need to import tomatoes
> anyway, is another popular argument made by Brexit defenders. While
> fields of polytunnels might be a common sight in southern regions of
> England, they are not working to capacity because many EU workers have
> gone home. Why have they gone home? Before Brexit, free movement
> legislation meant that citizens from the EU had the right to live and
> work in the UK without requiring permission. This all changed on January
> 1, 2020, when free movement ended, meaning workers from the EU now face
> more restrictive immigration rules. A major report from ReWAGE and the
> Migration Observatory at the University of Oxford in May 2022, showed
> that the end of free movement has exacerbated the recruiting issues many UK employers face.
>
> 3- Spanish growers blame associated Brexit costs and red tape
>
> Spain is the UK’s biggest foreign supplier of fresh fruit and vegetables.
> But additional paperwork and costs post Brexit has made the UK a less
> desirable market, some fruit and vegetable producers in Spain claim.
> Alfonso Galvez, general secretary of the Murcia brand of Asaja, Spain’s
> largest farming association, says the current shortages in the UK may
> have more to do with logistics and bureaucracy than the weather, which
> some growers – and much of the media – are pinning the shortages on.
>
> “There have been logistics and transport problems when it comes to
> export, such as a shortage of lorry drivers to service the UK market, and
> the problems we’ve seen with the queues to get into the country through
> Eurotunnel,” said Galvez. “On top of that, you’ve got the costs of all
> this bureaucracy and all these waits, which mean that perhaps the UK
> market isn’t so attractive,” he added.
>
> 4- Greenhouses too expensive to heat because of high energy costs
>
> In October 2021, the UK’s biggest tomato supplier shut its greenhouses
> due to soaring gas prices. Phil Pearson, group development director and
> head grower at APS Group – which supplies around 40% of Britain’s
> tomatoes – said: “I am really very worried for the future of UK food production in 2022.”
>
> There will be “empty shelves” Pearson warned, as the company’s energy
> costs had increased between six to seven fold. “The result of the gas
> prices mean, as an industry, we’re going to have less British tomatoes
> next year,” he added.
>
> Fast-forward 18 months and energy prices have rocketed further. But how
> is this related to Brexit? During the EU referendum campaign, Boris
> Johnson and Michael Gove promised cheaper household gas bills, if Britons
> backed Brexit. Energy prices might also be at record highs in Europe, but
> the countries in the EU’s internal energy market trade efficiently with
> one another via linked auctions that balance prices across the EU. In
> theory, having no ties to auctions from Europe, Britain could enjoy
> cheaper prices than elsewhere, if energy was cheap. However it isn’t, so
> the UK is exposed to higher prices.
>
> This week, Liz Webster of Save British Food called for an urgent return
> of free trade with Europe to keep supermarket shelves in Britain stocked.
> Talking to LBC, Webster said tomato growers in glass houses in the UK
> have shut down, as a “result of energy costs that are higher than the rest of Europe.”
>
> 5- Supply chain inefficiency
>
> Supply chain inefficiency post-Brexit has been attributed to the
> shortages of tomatoes and other fruit and vegetables.
>
> Ksenija Simovic, a senior policy adviser at Copa-Cogeca, a group which
> represents farmers and farming co-operatives in the EU, said Brexit
> certainly hadn’t helped Britain and its supply chain issues. According to
> Simovic, if there is a shortage of supply then the produce that is
> available is simply more likely to remain within the Single Market.
>
> “It doesn’t help that the UK is out of the EU and single market, but I
> don’t think this is the primary reason the UK is having shortages,” she said.
>
> Bring on the turnips
>
> Meanwhile, as experts warn supermarket stocks ‘may be low for a month,’
> the environment secretary Therese Coffey has come up with a solution –
> people should eat more homegrown food like turnips so we are less reliant
> on imported products.
>

--
Spike

Food prices have risen by 6% since the UK left the European Union, according to recent research from the London School of Economics (LSE) and other universities.

The findings were put together by researchers at LSE, Bocconi University in Milan, University College London, and University of Oxford, and supported and published by the UK in a Changing Europe (UKICE) research initiative.

According to the report, the primary reason behind the jump in prices is the increased trade barriers between the EU and UK, as well as the ongoing impact of the Trade and Cooperation Agreement (TCA) – the agreement between the two parties which establishes arrangements for future co-operation across a range of areas including trade, road haulage and fisheries.

By comparing the price change of food imported from the European Union between the end of 2019 and 2021 with those imported to the UK from elsewhere, the authors found food from the EU bloc had become the most costly.

Products with high EU import shares – foods like fresh pork, tomatoes, and
jam – were more affected than those with low EU import shares such as tuna and
exotic fruits such as pineapple.

The price of food imported from the EU increased the fastest in January 2021, when the EU- UK trade agreement, the TCA, came into play.

While the TCA does not place any tariffs on goods moving through Britain and the EU, regular food-safety inspections, delays at customs and extra paperwork have caused long waits between Dover and Calais and therefore are bringing additional costs to producers.

The report explains: “Firms could change the partner countries from which they are importing, or purchase domestically, but assuming they were operating in the most efficient manner initially, any change is going to incur extra costs. These costs may then be passed on to consumers, increasing consumer prices.”

Researchers did not see a similar impact on non-food imports, suggesting that perishable food items in particular “are more vulnerable to border delays”.

Germany has seen an 18.7% increase in food prices year-on-year, according
to figures for September 2022 released by the country’s Federal Statistical
Office.

The price of edible fats and oils like butter and sunflower oil saw the
sharpest increase, having risen by 49%.

Other household staples have also seen dramatic increases. Dairy products
and eggs were nearly 30% more expensive, and the price of meat and
meat-based products was up 19.5%. Meanwhile the price of bread and cereal
items have risen by an average of 18.5%.

Looking at monthly comparisons, the figures showed that consumers paid 1.8%
more for food in September than in August 2022. Vegetables in particular
were nearly 4% dearer month-on-month, while dairy products had increased by
2.2%.

General inflation in Germany has reached a peak of 10%­, which is the
highest level the country has seen since its reunification in 1990,
according to Dr Georg Thiel, President of the Federal Statistical Office.
Rising energy and food costs, exacerbated by the war in Ukraine, have both
contributed to the overall increase in rates, he said.

He commented: “Enormous price rises for energy products still are the main
reason for the high inflation. But we also see price increases for many
other goods, especially food.”

Thiel also blames the end of the country’s fuel discount period and the €9
monthly transport ticket for the acceleration of inflation. He added:
“These temporary measures of the second relief package had a downward
effect on overall inflation from June to August 2022.”

In comparison to other countries in Europe however, Germany is not the
hardest hit by food inflation. According to recent estimates from Trading
Economics, Turkey currently holds the highest grocery inflation rate
year-on-year for September at around 93%. Hungary and Moldova follow behind
at just over 37% – a record increase for both countries.

The increasing cost of food has forced many consumers to adjust their
everyday diets and spending. In the UK, where grocery inflation stands at
nearly 14%, a recent report found more shoppers are inclined to purchase
cheaper processed foods, which can be less nutritious and made with
lower-quality ingredients. They are also buying vegetables and fruit.

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
> Food prices have risen by 6% since the UK left the European Union,
> according to recent research from the London School of Economics (LSE)
> and other universities.
>
> The findings were put together by researchers at LSE, Bocconi University
> in Milan, University College London, and University of Oxford, and
> supported and published by the UK in a Changing Europe (UKICE) research initiative.
>
> According to the report, the primary reason behind the jump in prices is
> the increased trade barriers between the EU and UK, as well as the
> ongoing impact of the Trade and Cooperation Agreement (TCA) – the
> agreement between the two parties which establishes arrangements for
> future co-operation across a range of areas including trade, road haulage and fisheries.
>
> By comparing the price change of food imported from the European Union
> between the end of 2019 and 2021 with those imported to the UK from
> elsewhere, the authors found food from the EU bloc had become the most costly.
>
> Products with high EU import shares – foods like fresh pork, tomatoes, and
> jam – were more affected than those with low EU import shares such as tuna and
> exotic fruits such as pineapple.
>
> The price of food imported from the EU increased the fastest in January
> 2021, when the EU- UK trade agreement, the TCA, came into play.
>
> While the TCA does not place any tariffs on goods moving through Britain
> and the EU, regular food-safety inspections, delays at customs and extra
> paperwork have caused long waits between Dover and Calais and therefore
> are bringing additional costs to producers.
>
> The report explains: “Firms could change the partner countries from which
> they are importing, or purchase domestically, but assuming they were
> operating in the most efficient manner initially, any change is going to
> incur extra costs. These costs may then be passed on to consumers,
> increasing consumer prices.”
>
> Researchers did not see a similar impact on non-food imports, suggesting
> that perishable food items in particular “are more vulnerable to border delays”.
>

--
Spike

Your Brexit bill: The staggering cost of ‘Leave’ for every British household.

Brexit red tape has cost each household £250 in higher food bills alone since the UK left the EU, according to new research.

The analysis suggests that food price rises would have been 8 percentage points lower – nearly a third – without Brexit, at 17 per cent, rather than the actual rise of almost 25 per cent.

Annual food price inflation in the UK is near historic highs, with some basic goods rising by up to 46 per cent in a year, official figures show, exacerbating the cost-of-living crisis.

The overall extra cost of Brexit red tape to UK households is £6.95 billion, according to the experts at the Centre for Economic Performance at the London School of Economics, who looked at the effect of trade barriers on food prices.

Non-tariff barriers in force since Brexit include customs checks, rules-of-origin requirements and health paperwork for animals and plants.

A previous version of paper, Non-tariff barriers and consumer prices: evidence from Brexit, found that leaving the European Union on 31 January 2020 added an average of £210 to household food bills over the two years to the end of 2021. Now that figure has risen further.

Between January last year and March this year, the price of food products that were more exposed to Brexit because the UK imported them in high volumes from the EU before the referendum increased by about 3.5 percentage points more than those that were not, the research found.

The report authors blame these changes entirely on products with high non-tariff barriers.

Prices of products such as meat and cheese imported from the EU have increased by about 10 percentage points more than similar products not exposed to Brexit since January 2021, when the trade and cooperation (TCA) agreement began, the study says.

The price rises of products more exposed to Brexit are not linked to other factors such as Covid lockdowns or Russia’s invasion of Ukraine.

“The fact that the results are driven entirely by products with high non-tariff barriers imported from the EU offers strong evidence that Brexit is the driving force behind these effects,” the researchers say.

swldx...@gmail.com <swldxer1958@gmail.com> wrote:
>
> Your Brexit bill: The staggering cost of ‘Leave’ for every British household.
>
> Brexit red tape has cost each household £250 in higher food bills alone
> since the UK left the EU, according to new research.
>
> The analysis suggests that food price rises would have been 8 percentage
> points lower – nearly a third – without Brexit, at 17 per cent, rather
> than the actual rise of almost 25 per cent.

Fascinating that you seem to think that a 17 percent food-price inflation
rate is acceptable!

Still, it’s much the same in the EU - was that due to Brexit too?

> Annual food price inflation in the UK is near historic highs, with some
> basic goods rising by up to 46 per cent in a year, official figures show,
> exacerbating the cost-of-living crisis.
>
> The overall extra cost of Brexit red tape to UK households is £6.95
> billion, according to the experts at the Centre for Economic Performance
> at the London School of Economics, who looked at the effect of trade
> barriers on food prices.
>
> Non-tariff barriers in force since Brexit include customs checks,
> rules-of-origin requirements and health paperwork for animals and plants.
>
> A previous version of paper, Non-tariff barriers and consumer prices:
> evidence from Brexit, found that leaving the European Union on 31 January
> 2020 added an average of £210 to household food bills over the two years
> to the end of 2021. Now that figure has risen further.
>
> Between January last year and March this year, the price of food products
> that were more exposed to Brexit because the UK imported them in high
> volumes from the EU before the referendum increased by about 3.5
> percentage points more than those that were not, the research found.
>
> The report authors blame these changes entirely on products with high non-tariff barriers.
>
> Prices of products such as meat and cheese imported from the EU have
> increased by about 10 percentage points more than similar products not
> exposed to Brexit since January 2021, when the trade and cooperation
> (TCA) agreement began, the study says.
>
> The price rises of products more exposed to Brexit are not linked to
> other factors such as Covid lockdowns or Russia’s invasion of Ukraine.
>
> “The fact that the results are driven entirely by products with high
> non-tariff barriers imported from the EU offers strong evidence that
> Brexit is the driving force behind these effects,” the researchers say.
>

--
Spike

Adding up the impact on all British households suggested they had paid an extra £6.95bn as a consequence, they said. “Between December 2019 and March 2023 food prices rose by almost 25%. This analysis suggests that in the absence of Brexit this figure would be 8 percentage points (30%) lower,” the report found.

Simon Mason <swldxer2022@gmail.com> wrote:
> Adding up the impact on all British households suggested they had paid an
> extra £6.95bn as a consequence, they said. “Between December 2019 and
> March 2023 food prices rose by almost 25%. This analysis suggests that in
> the absence of Brexit this figure would be 8 percentage points (30%)
> lower,” the report found.

So what accounts for the state the Germans are in, with soaring food and
energy prices?

--
Spike

Leaving the European Union (EU) added an average of £210 to household food bills over the two years to the end of 2021, costing UK consumers a total of £5.8 billion, new research from the Centre for Economic Performance (CEP) at the London School of Economics finds.

And since low-income households spend a greater share of their income on food than richer families, these Brexit-driven price rises had a proportionately greater impact on the poorest people.

A previous report by CEP researchers found that leaving the EU increased the price of food products by six per cent.

The latest study - Non-tariff barriers and consumer prices: Evidence from Brexit - confirms that food prices increased by six per cent and finds that for the poorest households, this feeds through into a Brexit-induced rise in the overall cost of living of 1.1 per cent - 52 per cent more than the 0.7 per cent rise felt in the top 10 per cent of households.

The authors also look in depth at the mechanisms behind the price rises. The EU is, the researchers point out, a “deep” trading bloc. It goes far beyond the elimination of tariffs within its borders: it also minimises non-tariff barriers (NTB) to trade through, for example, mutual recognition of standards.

While the Trade and Cooperation Agreement, which came into force in January 2021, ensures that trade between the UK and the EU remains tariff-free, it lacks the depth of the EU. This means there are now, post-Brexit, more NTBs between the UK and the EU. These include new comprehensive customs checks, rules of origin requirements and sanitary and phytosanitary measures for trade in animals and plants.

The authors find that it is these NTBs that have affected prices. The rise in consumer prices was driven only by products with high NTBs and there was no significant rise in prices for products with low NTBS – suggesting that EU exporters and/or UK importers face higher costs due to these new barriers and between 50 per cent and 88 per cent of these costs have been passed on to consumers.

The changes have benefitted domestic producers of food, who now have less competition from European imports. But the gains to domestic firms are outstripped by the loss to domestic consumers by more than £1 billion. Additionally, unlike regular tariffs, NTBs do not generate any revenue for the government.

Richard Davies, an associate of CEP’s growth programme and a professor at Bristol University and study co-author, said: “The UK inflation rate rose above 11 per cent in 2022, the highest rate in 40 years. Many factors, affecting both supply and demand for goods and services, are involved. One factor in this high inflation has been the rise in non-tariff barriers for trade with the EU.

“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 six per cent overall.”

Nikhil Datta, an associate of CEP’s labour markets programme and an assistant professor of economics at Warwick University and study co-author, said: “The policy implications are stark: 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.

“We calculate that Brexit caused a loss of £210 for the average household, or £5.84 billion overall, when looking at its impact on the food market alone. Since poorer households spend a larger fraction of their income on food, they are hit harder.”