Food Price Inflation

Debate between Mark Spencer and Jim McMahon

Thursday 23rd March 2023 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on food price inflation.

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

I will respond on behalf of the Secretary of State. I draw attention to my declaration in the Register of Members’ Financial Interests.

We recognise that food prices have gone up. The recent increase in food price inflation was driven by upward price movements in eight of the 11 food categories. The three most significant price increases since February 2022 are oils and fats, at 32.1%; milk, cheese and eggs, at 30.8%; and non-classified food products, at 28.9%. While recent unseasonable weather in Morocco has also created some temporary supply disruption to fruit and vegetables, domestic retailers have held prices comparatively low compared with the rest of Europe, where increased demand led to some cases of 300% rises in the price of some vegetables.

A number of media outlets have reported that the recent shortage of some salad and vegetables has been the driver for the increase in food inflation in February, but that is not the case. The overall inflation rate increases have been caused by several factors. There are other categories where price increases have been greater than that of vegetables over the past year.

These high overall inflation rates are driven by high utility prices and pressures on global supply chains that are being felt across Europe and beyond. Commentators expect the rate of inflation both across the economy and for food and drink to be near its peak. The Government have put in place a number of measures to support households with prices, including committing £37 billion to support households with the cost of living; £1 billion of that has already gone towards help with the cost of household essentials.

Looking forward to April, the Government will be uprating benefit rates and state pensions by 10.1%. The benefit cap levels will also be increasing by the same amount in order to increase the number of households that can benefit from those uprating decisions. In addition, for 2023-24, households on eligible means-tested benefits will get up to £900 in cost of living payments. That will be split into three payments of around £300 each across the 2023-24 financial year. A separate £300 payment will be made to pensioner households on top of their winter fuel payments, and individuals in receipt of eligible disability benefits will receive a £150 payment.

Free school meal eligibility is being permanently extended to children from all families with no recourse to public funds. The Government have extended free school meals to more groups of children than any other Government over the past half century. We remain committed to ensuring that the most disadvantaged children continue to be supported.

We are also working closely with retailers to explore the range of measures they can take to ensure the availability and affordability of food, so while we recognise that this is a challenging time for consumers, we are taking a large number of steps to support people with the cost of living and I have great faith in the food supply chain, which has proven itself to be extremely resilient over the past few years.

[Mr Speaker]

I call the shadow Secretary of State.

[Jim McMahon]

I thank the Minister of State for his response, but this is a cost of living crisis driven in large part by the cost of food, so where is the Secretary of State? She seems to spend more time in the departure lounge than in her own Department at times. Mr Speaker, I feel like I am shadowing a shadow. Where is the Secretary of State on the most important issue at this point in her brief?

Once again, we are in the midst of a cost of living crisis, in which food inflation is playing a large part. If inflation overall is not curbed, the danger is that that will have an impact on the ability of people to pay their mortgages and we could see further interest rate rises as a result. There are serious questions about the Government’s approach to the cost of food and our food security. Some producers are reducing production and some are exiting completely. There are now 7,000 fewer food producers in agriculture than in 2019. Food inflation is up 18.2%, which is the highest in 45 years, and import costs to February are up 12.7%. The Minister knows—he is in the business—that those import costs today will be felt for months to come.

There has been warning after warning. Thanks to you, Mr Speaker, this is the second urgent question on food security, but where are the Government on farming payments, on labour shortages, on energy costs, on the costs of feed and fertiliser and on the impact of avian flu? Last time the Secretary of State was here, her advice to the nation was a call to arms to go out and buy turnips —those were her words of wisdom. That just does not wash. When will the Government realise that this is a crisis of their making and they need to take action now?

[Mark Spencer]

I thank the hon. Gentleman for his comments and statements—there were not many questions in there. I can tell him that the Government wholly recognise the challenge that inflation brings to the economy. That is why the Chancellor of the Exchequer has set out a number of measures to curb inflation and to manage the economy in a way that he will struggle to understand.

I would also say that huge pressures in the global economy, following Putin’s invasion of Ukraine on the back of a global pandemic, are being felt all around the world. Global energy prices have driven huge spikes, for example in the cost of fertiliser, which the hon. Gentleman mentioned: ammonium nitrate went from circa £250 a tonne to in excess of £1,000 a tonne for a short period. The good news is that global gas prices are easing back and coming back under control into a more affordable price range. That will take time to feed through to some of the cost pressures that are being put on our primary producers, but the Government are continuing to talk—[Interruption.] From a sedentary position, the hon. Gentleman mentions labour. That is why the Government increased the number of seasonal agricultural worker visas to 45,000.

[Jim McMahon]

We need 90,000.

Oral Answers to Questions

Debate between Mark Spencer and Jim McMahon

Thursday 23rd February 2023 Commons Chamber

[Jim McMahon]

I am very happy for the Farming Minister to apologise on the Secretary of State’s behalf for her outrageous display at the NFU conference in Birmingham yesterday. Will he use this opportunity?

[Mark Spencer]

The hon. Gentleman will know that the Secretary of State cannot answer this question, because of parliamentary procedure; I am obliged to answer, because I am answering—

[Mark Spencer]

Thank you, Mr Speaker. The Secretary of State can speak for herself, but we had a successful meeting with farmers in Birmingham. There were some robust exchanges, but that is what we welcome and we engaged with. We continue to work with the NFU and other groups that represent the farming industry.

[Jim McMahon]

We are going to have the urgent question on food security a bit later, so I will not labour that at this point. I also thank you for granting the UQ, Mr Speaker. Will the Minister confirm whether the Government have convened a cross-government committee to look at food security in this country and, in particular, the levers they can deploy? I am referring to financial support for farmers, support for energy-intensive food producers, and dealing with labour shortages and all the other issues about which, as he would have heard in Birmingham, farmers feel very frustrated, as it does not feel as though progress is being made on them.

[Mark Spencer]

Of course, there are Cabinet Office committees that look at all these challenges, but we in the Department continue to meet retailers on a regular basis. We are convening a roundtable with supermarkets to see how we can assist with those supply chain challenges that we face. We are gripping the situation and trying to assist where we can. It is down to the market to supply where it can, but there are huge challenges, including those in Morocco and Spain that have caused disruptions to food supplies in the UK at this moment.

Oral Answers to Questions

Debate between Mark Spencer and Jim McMahon

Thursday 8th September 2022 Commons Chamber

[Mr Speaker]

I think there will be a lot of nervous lambs in Wales awaiting that visit. Let us come to the shadow Secretary of State, Jim McMahon.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

First, may I welcome the new Secretary of State, the hon. Member for North East Hampshire (Mr Jayawardena), 54and his Ministers to their place? I look forward to a constructive relationship, but it will be a testing relationship, as we work through the catalogue of failures left by his predecessor.

Rocketing food costs have pushed inflation to a 40-year high and, according to the Bank of England, households and food producers are set to face harder pressures yet. Last week, I received a letter from a family bakery who are extremely worried that their energy bills are increasing by 380%, potentially risking the viability of some of their stores. An energy crisis, a food security crisis, a labour crisis and an import cost crisis—how much worse is it going to get for businesses and the 7 million people already in food poverty?

[Mark Spencer]

I thank the hon. Gentleman for his question and look forward to working with the Opposition Front Bench. I would strongly push back at his comments about the previous Secretary of State. The work he did to support rural communities and UK agriculture was fantastic, and we should pay tribute to him for that. Of course, Vladimir’s invasion of Ukraine has caused massive ripples. It is a global challenge, but we are in a position where the UK economy is fit, and that puts us at an advantage compared with some of our competitors around the world. We will be able to intervene to try and assist people. We have already committed to £37 billion of support for consumers, and if the hon. Gentleman waits, he will be able to listen to the Prime Minister at the Dispatch Box later today setting out her plans to support those businesses and people across the country.