Economists say border costs added £7 billion to grocery bills; Study comes as ONS data shows food prices driving inflation
Brexit is responsible for a third of UK food price inflation since 2019, according to research by the London School of Economics that undermines efforts by the government to show the EU divorce has benefited Britain.
Regulatory, sanitary and other border checks added almost £7 billion ($8.7 billion) to total domestic grocery bills over the period from December 2019 to March 2023 — or £250 per household, economists at the LSE’s Centre for Economic Performance said. Prices rose by 25% over the period rather than the 17% they would have gained if Britain had stayed in the EU single market, they said.
The findings come amid signs that inflation is becoming entrenched and the cost-of-living crisis is now a largely domestic problem. With YouGov polling showing that more than two thirds of Britons say the government is handling the EU departure badly, they also pile pressure on Prime Minister Rishi Sunak to show that he’s delivering benefits of Brexit.
Food Prices Are Rising at the Fastest Pace for 46 Years
Source: Office for National Statistics
Sunak told reporters last week on a visit to Japan that he believes in Brexit and that his Conservative government has already delivered benefits including a cut to sales tax on sanitary products, reforms to alcohol duties that will result in cheaper beer in pubs, and reforms to financial services regulations.
But that’s not persuading the British electorate. A YouGov survey on Sunday showed 68% of Britons think the government is handling Brexit badly, versus 22% who said it’s going well. ...
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