Asked by: Lord Weir of Ballyholme (Democratic Unionist Party - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government what is their assessment of the costs to UK businesses of the requirement for not-for-EU labels on products in (1) 2023–24 and (2) 2024–25.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
The first phase of ‘Not-for-EU’ labelling requirements under the Northern Ireland Retail Movement Scheme took effect from 1 October. Further phases will follow in October 2024 and July 2025. The Government would not normally provide any financial support to businesses for the cost of new labelling requirements. However, in recognition of the accelerated timescale compared with standard labelling changes, we have exceptionally made available a £50 million fund, the Transitional Labelling Financial Assistance Scheme. This will cover 2023-24 (phase one) costs only, because the following phases are in line with normal timescales for labelling changes. Redesign, printing and warehouse costs for product, box, and shelf level labelling will all be in scope.
The Government will publish its assessment of the costs of the new labelling requirements in due course. The £50 million grant fund we have announced is designed to cover the majority, though not all, of industry costs incurred in this respect. This is to encourage efficiency and because labelling changes would normally be part of the cost of doing business for the food industry, as well as to protect the public purse.
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