Food Price Inflation

Andrew Percy Excerpts

Thursday 19th May 2022 Commons Chamber

[George Eustice]

I am sorry that the hon. Gentleman does not want to hear facts, but the urgent question is about food price inflation and the facts about that do matter. He is the one who wishes to spectate and commentate, rather than dealing with the facts before us. I absolutely acknowledged that food prices are rising, and faster than we have seen in recent years. Indeed, household spending among the poorest 20% may return to the levels it was when his party was last in power. However, it is also the case that, in April, overall food prices rose by 1.5%.

The hon. Gentleman asked about fertiliser prices. Here there has been more positive news this week. Fertiliser prices peaked at about £1,000 per tonne in March. This week they have fallen to about £620 per tonne—it was £290 per tonne a year ago. Farmers are purchasing at that level. He expressed concerns about carbon dioxide supply, but that is a by-product of the manufacture of ammonium nitrate, and now that the main fertiliser plants, including the one at Billingham, have reasonably full order books for the remainder of the summer and are manufacturing and selling ammonium nitrate, we do not foresee a problem when it comes to carbon dioxide.

The hon. Gentleman made a good point, which was that the cause of the pressure on household incomes has been the global spike in gas prices and the corresponding impacts on people’s energy bills—household electricity and gas bills have risen sharply. The Government have put in place some measures to try to mitigate and dampen that, but we have always been clear that we cannot remove the impact altogether. Of course, because people need to buy food every week, when there is pressure on the household budget, an inability to buy food is what they notice first, even if food prices have not changed dramatically from where they were previously.

The hon. Gentleman mentioned those in work. The Government have been very clear about that. Over the years, we have continued to raise the threshold before the lowest earners pay any tax at all and in April this year we increased the new national living wage to £9.50 an hour. Those on the lowest pay will have an additional £1,000 in their pay packets as a result.

Finally, I take this opportunity at the Dispatch Box to praise the work of Don Gardner and local volunteers, whom I meet regularly in my constituency of Camborne and Redruth. We often work in conjunction with them to help to ensure that people visiting that food bank can get access to the benefits and support that they need.

[Andrew Percy (Brigg and Goole) (Con)]

Compared with the last major recession we had under the Labour Government, we have done a great deal to expand provision, including free school meals to post-16 students and to all infant-aged children—something the Labour party never offered. On the issue of community food pantries and food banks, I commend to the Secretary of State the model established by Councillor Anne Handley in Goole, the Two Rivers community pantry and the incredible team of volunteers. They are providing heavily subsidised food to anyone in the town who wants it. We have received support via the Department for Environment, Food and Rural Affairs in the past. Can he assure me that that support will continue for amazing schemes such as the Two Rivers community pantry?

[George Eustice]

My hon. Friend makes an important point. Projects and charities such as that do indeed perform an important role in our country. Often, the strongest part of their role is not just the provision of immediate emergency support, but help for people to get the support that they need to address other issues and challenges they might have in their life, so that they can get things back on track.