Tariff removal on ‘everyday’ food items won’t curb inflation: NFU

The NFU has cast doubt that the Chancellor’s move to scrap import tariffs on over 100 everyday food and drink items will tackle inflation, and slammed the government’s instinct “to look overseas” in times of crisis.

With almost 90% of the UK’s food imports already duty-free, NFU president Tom Bradshaw said he was “not convinced” further tariff removals – as set out in the Treasury’s list, published today – would “help curb food price inflation”.

And as consumers were facing the prospect of higher food prices, “farmers too are bearing significant cost increases due to the conflict in the Middle East”, Bradshaw argued.

The full list (see below) includes proposals to remove a raft of food and drink items typically imported into the UK, from olives and bananas to avocados, green tea, aubergines and citrus fruits.

However, it also includes products that are widely manufactured by British businesses in the UK, including bread, margarine, biscuits, crisps, sugar confectionery and chocolate bars.

‘Worrying signal’ for farmers

As a result, the government’s decision to temporarily remove tariffs – a move the Treasury last week said would save shoppers £150m a year – was slammed by Bradshaw as “sending a worrying signal”.

At times of crisis, the instinct of ministers was “to look overseas rather than to strengthen domestic food production and reduce exposure to global shocks”, he said.

“The government’s new Farming & Food Partnership Board has been created to build resilience and confidence across the farming sector – that’s what needs our focus,” Bradshaw added.

“Rather than looking at further tariff reductions, this is the time for government to back British food and farming,” he urged. “Alongside adopting immediate measures that would help keep on-farm cost inflation under control, we urge ministers to back efforts to boost resilience in our food systems.”

A host of key short-term actions proposed by the farming union included improving transparency around fuel and fertiliser prices, postponing “inefficient” FSA control charges which impacted medium-sized abattoirs, and suspending import duties on critical inputs such as fertiliser including urea (6%) and ammonium nitrate (6%).

“Supporting our food producing businesses will ensure a strong domestic supply of food, with farmers and the public less vulnerable to global price shocks, meaning food price stability and long-term affordability,” Bradshaw said.

“Chasing cheap food in the short term threatens to undermine our long-term domestic food production and the shared ambition for a sustainable food system.”

His comments echo those of the Food & Drink Federation, whose CEO Karen Betts last week said removing tariffs on products already made in the UK “undermines rather than supports those businesses and the people they employ”.

Instead, government should remove tariffs on ingredients “and address the root causes of food inflation, including by rigorously prioritising burdensome regulation”, she insisted. “Otherwise this risks benefiting overseas manufacturers at the expense of our domestic food system.” 

Building on an earlier tariff suspension on some food items in April (such as pasta, juices, tuna and oranges), the Treasury’s new, “targeted” tariff cuts are subject to industry consultation and would run until December 2028. 

The Treasury last week stressed tariff suspensions were focused on products for which there was little or no production in the UK.

“People are worried about what the conflict in the Middle East could mean for their food bills,” Chancellor Rachel Reeves said last week. “That’s why we’re suspending select food tariffs, easing pressure on household budgets while continuing to support British farmers and keep our food supply secure.

“We’re working closely with supermarkets, producers and suppliers to protect family finances and ensure farmers can continue producing high‑quality British food.”