Oral Answers to Questions

Mark Spencer Excerpts

Thursday 25th May 2023 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

3. What recent discussions she has had with supermarkets on ensuring that reductions in wholesale food costs are reflected in food prices.

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

The Department meets regularly with food retailers to discuss a range of issues, including the impact of food inflation. Most recently, on Tuesday the Chancellor and the Secretary of State met a number of food and drink manufacturers. We will continue that engagement to ensure consumers have access to a range of affordable food, in recognition of the pressures people are feeling at home.

[Michael Fabricant]

I thank the Minister for his answer. My constituents in Lichfield and Burntwood, and people in the rest of the country, are enduring high food inflation, as are those in the rest of Europe. What controls—if that is the word—do we have to ensure supermarkets do not take unfair advantage and excess profits from wholesale prices?

[Mark Spencer]

I thank my hon. Friend for his question. Retailers work to ensure strong that competitive pressure remains in the marketplace. However, the Competition and Markets Authority announced last week that it is looking into the grocery sector to see whether any failure in competition is contributing to prices being higher than they would normally be. The CMA will focus on areas where people are experiencing greater cost of living pressures. My hon. Friend will also be aware that the Groceries Code Adjudicator will remain separate from the CMA and can take up investigations should it choose to do so.

[Dan Jarvis (Barnsley Central) (Lab)]

Food price inflation remains at the eye-wateringly high level of 19%, causing misery to millions. The UK Farm to Fork summit provided an opportunity to tackle inflationary pressures across the supply chain, but the Secretary of State’s written statement did not mention inflation once. Can the Minister say if there is a plan to rapidly reduce food price inflation—and if not, why not?

[Mark Spencer]

The hon. Gentleman will be aware that one of the Prime Minister’s main targets is to reduce inflation. Clearly, food makes up a huge part of that inflationary pressure. Pressures in global markets are driving up energy and food, not least because of Vladimir Putin’s illegal invasion of Ukraine, but we are working closely with retailers, producers and processors to ensure we can strip out as many of those pressures as possible.

[Mr Speaker]

We come to the shadow Minister.

[Daniel Zeichner (Cambridge) (Lab)]

Food inflation is running at almost 2%, lower-standard imported eggs are on supermarket shelves because our producers are being undercut, and today record immigration numbers are announced, but the wrong people—we do not have the people to produce food in our fields. What are the Minister and the Secretary of State, who are responsible for our food system, doing about all that? Are they just innocent bystanders?

[Mark Spencer]

Once again, the hon. Gentleman is a little disingenuous. The immigration figures were partly driven by people coming from Ukraine and Hong Kong. I recognise that we need help and support in the labour market. That is why the Government have issued 45,000 visas, with an extra 10,000 top-up not only for this year —we have already have stated we will do that again next year—to give growers and producers the opportunity to source the labour they need to harvest vegetables and fruit.

[Mr Speaker]

I call the Scottish National party spokes- person.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Last week’s most vaunted Farm to Fork Summit, from which the Scottish Government were excluded, was described as an “empty meeting” by food and farming industry representatives, with no action on price or food inflation discussed, and one that

“did not touch on the fundamental problems of food price inflation”.

In addition, Ministers offered no commitment in response to a call by the National Farmers Union to stop Britain’s self-sufficiency in food slipping below its current level of 6%. Does the Minister agree with the National Farmers Union’s assessment of the summit? If not, what concrete outcomes does he think it achieved on food price reduction?

[Mark Spencer]

I do not know whether the hon. Lady lives in a different universe, because the NFU welcomed the food summit. It requested it and it was grateful that it took place. It was a huge success, pulling together retailers, processers and primary producers to get under the skin of the challenges that we face as a country. We will solve those challenges by working together. Many people celebrated that Farm to Fork Summit, as should she, rather than criticising it.

[Kirsten Oswald (East Renfrewshire) (SNP)]

4. What recent assessment she has made with Cabinet colleagues of the potential impact of the duty and customs regime following the UK’s exit from the EU on the fresh food and drinks sector.

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[Peter Grant (Glenrothes) (SNP)]

10. What recent discussions she has had with Cabinet colleagues on the cost of food.

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

We have regular discussions with Cabinet colleagues on a range of issues, and as halving inflation is one of the Government’s top priorities, it is discussed regularly. Recent discussions have covered the substantial package of support from the Department for Work and Pensions and the Treasury that is already in place, and we continue to meet retailers and producers to explore how they can further support their customers.

[Peter Grant]

Families on lower incomes have no choice but to spend a much bigger proportion of their income on basic foodstuffs than those of us who are lucky enough to be better off. With inflation for many basic foodstuffs still running at over 30%, thousands of my constituents are facing real cost of living increases that are probably double the official rate of inflation. Government targets are all very well, but my constituents cannot eat targets. Can the Minister give any indication of how much longer my constituents will have to wait until the real price of their food shopping bill comes back to what it was just two years ago?

[Mark Spencer]

Of course we recognise that challenge, and that is why we are protecting the most vulnerable households. The Chancellor of the Exchequer has introduced targeted support worth £26 billion to support those very people. More than 8 million households are eligible for means-tested benefits. They will receive extra cost of living payments totalling £900 per household in 2023-24, and over 99% of the cost of living payments for this year have already been made.

[Theresa Villiers (Chipping Barnet) (Con)]

Will the Minister ensure that our farm support programmes, as well as delivering crucial environmental goals, make it easier for farmers to make a living from growing food? That will feed through into lower food prices.

[Mark Spencer]

It is worth stating again that food production is the primary purpose of farming in this country. We will always back our farmers to produce great-quality, high-welfare food, but we can do that at the same time as improving our environmental output and biodiversity.

[Dan Carden (Liverpool, Walton) (Lab)]

11. What assessment she has made of the potential impact of food price inflation on levels of demand for emergency parcels from food banks.

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

As I said earlier, tackling inflation is the Government’s No. 1 priority, and we have a plan to halve inflation this year. We have provided significant support over this year, worth more than £3,500 per household. That includes direct cash payments to the most vulnerable households, as well as uprating benefits and the state pension by over 10% in April.

[Dan Carden]

According to this week’s inflation data, the cost of sugar and some cooking oils is up nearly 50%, but the prices that people see in the supermarkets for some products are up 100% and above—I hope the Competition and Markets Authority will get to the bottom of that. It is no wonder that food banks are facing record levels of need for support. Between April 2022 and March 2023, the Trussell Trust distributed more than 1 million parcels to children, reaching this grim milestone for the first time in its history. What is the Department doing to ensure that, when food banks are overwhelmed, the Government are there to step in?

[Mark Spencer]

The hon. Gentleman will be aware of the household support fund. The Chancellor of the Exchequer introduced a huge £26 billion package of support for the most vulnerable households, to get them through the pressures they are feeling. We are subject to the global pressures driven by Vladimir Putin’s invasion of Ukraine, which has caused huge ripples not only in the UK but around Europe. We will back those people, and we will support the most vulnerable in society.

[Simon Jupp (East Devon) (Con)]

T2.   If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Judith Cummins (Bradford South) (Lab)]

T3.   Yesterday, we learned that sugar prices have risen by a massive 47% in the past year, and industry experts predict that they will rise again this autumn, because of the high energy costs of extracting and refining sugar. What steps is the Minister taking to support the food and drink sector throughout this period of extreme inflationary pressure, so that these costs are not, yet again, passed on to consumers?

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

The hon. Lady should be aware that I meet British Sugar regularly. We are keen to help and support it with new technology, with investment in genetic technologies to improve sugar beet yields. We will continue to have those conversations. We are very much aware of the pressures on global sugar prices, which is why we need a thriving and productive sugar market here in the UK.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

My local farmers have told me that they need their seasonal worker visas extended to a nine-month period from six. Will the Department work with the Home Office to have that extended?

[Mark Spencer]

I thank my hon. Friend for her question. We are very aware of the challenges those businesses are facing, which is why we have increased the number of visas. We have also rolled over 45,000 visas to next year, with an extra 10,000 if required. We will continue to have conversations with our friends at the Home Office on how we can best support that sector.

[Dan Jarvis2002 (Barnsley Central) (Lab)]

T4.   Should not the cost of cleaning up our waterways be met by the profits of water companies, not higher bills paid for by hard-pressed consumers?

--- Later in debate ---

[Greg Smith (Buckingham) (Con)]

Although showing some progress, the NFU’s latest digital technology survey reveals that only 21% reported reliable mobile signal throughout their farms and fewer than half have adequate broadband for their business. What is my right hon. Friend doing with her counterparts in the Department for Science, Innovation and Technology to ensure that rural businesses are prioritised for increased connectivity.

[Mark Spencer]

My hon. Friend is absolutely right: of course we need good broadband and good connectivity across rural areas. We continue to have conversations with our friends in the Department to make sure that this is delivered, as it is a priority of the Government.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T7. Those of us who represent fishing communities hear every week of boats that have had to tie up as a consequence of their inability to get crew, because of the Home Office’s refusal to give a bespoke visa scheme for getting crew. We all hear it. Can the Minister assure me that his Department is actually counting the number of these boats, and can he tell the House what it stands at today?

[Mark Spencer]

The right hon. Gentleman will be aware that we have been able to get fishermen on to the shortage occupation list. The Home Office has conceded on that so that those people can now make use of that process. We shall continue to have conversations with both the fishing industry and the Home Office to try to help the industry. The good news is that, following our leaving the EU, we do now have the opportunity to manage our own fisheries and we have been able to increase quotas, and the amount of catch and fish that is landed has now gone up.

[Dr Neil Hudson (Penrith and The Border) (Con)]

This week, the Environment, Food and Rural Affairs Committee visited a Dogs Trust rescue centre as part of our inquiry on pet welfare and abuse. Each year, huge numbers of puppies, heavily pregnant dogs and dogs that have had their ears horrifically cropped are smuggled into the UK. Can my right hon. Friend reassure me and the House that the Government are committed to stamping out these horrific practices by bringing back the appropriate animal welfare legislation?