Food Inflation

Stella Creasy Excerpts

Thursday 15th January 2026 Westminster Hall

[Catherine West]

Indeed, and it is wonderful to hear hon. Members speaking up on behalf of their constituents, particularly farmers—we now have so much more information about farming now than there was before.

Coming back to the point about the prices of cheaper foods rising at a much higher rate than the prices of more expensive food, cheapflation means that low-income families lose out. We know one reason for that is that margins on cheaper food are much tighter than those on more expensive food, so suppliers cannot absorb rising costs and households who are already selecting the cheapest varieties have nowhere else to go.

We also know that food inflation in the UK is generally higher than for our neighbours in Europe. Academic studies have suggested that Brexit has added as much as eight percentage points to food inflation, amounting to an extra £6.95 billion in food costs from December 2019 to March 2023. Since Brexit, the UK has lost the complex network of agrifood supply chains that we had shared with other members of the EU.

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

I wonder whether my hon. Friend heard the testimony of Toby Ovens, the managing director of Broughton Transport Solutions, to the Business and Trade Committee the other day. He spoke about how we have lost that complex network, but gained a mountain of paperwork, which is accounting for much of the costs that are incurred for the food that is coming into our country. That includes 26 different stamps that he now has to get to import food into our country. Does she recognise that one of the ways that we can help bring food costs down is to get that sanitary and phytosanitary deal signed?

[Catherine West]

My hon. Friend is quite right, and is well versed on these issues. UK businesses face more red tape when they want to import from and export to the EU, invariably adding to costs in the sector. On 19 May last year, the UK and the EU agreed an exciting new strategic partnership, including an agreement to work towards a common sanitary and phytosanitary—SPS—area agreement to make agrifood trade easier. The Government estimate that that deal would add £9 billion to the UK economy in the long term. My right hon. Friend the Paymaster General, who is also Minister for European Union Relations, has said that it will bring down prices on supermarket shelves. I pay tribute to him and his excellent civil servants for everything they are doing to foster a good working relationship with Brussels and secure a better deal for UK food suppliers.

In my constituency, we are blessed with a huge range of small shops and market stalls selling fruit and veg of every kind, but that is not the case across every region of the UK. Fresh food deserts—areas where people rely on convenience stores—are an increasing phenomenon. As research from Which? shows, people who have to rely on smaller supermarket convenience stores are often charged more for the same products, and do not always have access to budget and own brand ranges.

In the same way that people in the 1940s could go to a nice restaurant for a ration book-free dinner, in 2026 people can gain access to cheaper fresh food and budget ranges if they have access to a car so they can go to the out-of-town supermarket. A Sainsbury’s poster from the rationing era acclaims the freshness of their produce due to high turnover of stock and guarantees that there will be no profiteering. I invite every supermarket to produce a 2026 version of that poster and to guarantee that they will not charge more for everyday food items in their small convenience stores than they do in their out-of-town supermarkets, and that their budget ranges will be available at all their convenience stores.

--- Later in debate ---

[Katie Lam]

What is important here, and what I am trying to set out, is how many costs farmers have to meet even just to get their produce out of the door. When we talk about food prices, it is inevitable that we will talk about why those prices rise, what the costs are and how they might be going up. Many of my farmers work incredibly hard to put food on people’s tables, and my aim is to talk through the costs they face even just to be able legally to sell their produce. It is important for constituents who are listening to this debate to understand what goes into the pint of milk that they buy.

Dairy farmers live an extremely difficult lifestyle. They work long hours and can never afford to take a day off—the cows will, after all, always need milking. Thanks to farmers’ hard work, we are able to enjoy some of the finest dairy products anywhere in the world. Given the difficulties they face, we should not be making their lives harder by forcing them to navigate mountains of paperwork and endless regulatory compliance. It is bad for them and bad for those who want to buy their products at an affordable price.

[Ms Creasy]

Will the hon. Member give way?

[Katie Lam]

I am so sorry; I am running out of time.

The same is true across every other type of farming or food production, from vegetables to vineyards. For the sake of those who put food on our plates and of families working hard to make ends meet, will the Minister—who I notice is wearing our favourite suit jacket again today, as am I—please explain what steps the Government are taking to reduce costs for food producers and, in turn, for producers across this country?

Finally, those Government hurdles are due not just to legislation. Peter Hall at Little Mill Farm in Marden in my constituency does incredible work with the Felix Project. He gives away thousands of apples and pears from his orchards to be eaten by children who would otherwise not be able to eat them. He would happily sell them to local schools at cost price or lower, but the tangled bureaucracy of procurement makes that impossible. Addressing that issue would be a win for everyone. It would mean healthier food being provided cheaply for local children, supporting our farmers, tackling food waste, and preventing orchards from having to be grubbed up, which releases a lot of carbon into the atmosphere. Will the Minister please set out any plans she might have to make it easier for local farmers to sell their produce to state institutions nearby?