Background
The Government is suspending some tariffs to reduce the cost of food and other household items to try and mitigate price rises triggered by the war in Iran. It has already confirmed a list of food items including fruit juices, fruit and vegetables, pasta and tuna where tariff suspensions will be implemented imminently until the end of 2028. The full list was published in May and is available here
At the end of May the Government announced a consultation on further suspension of food tariffs, alongside suspensions of fertiliser and kerosene tariffs.
The consultation closes on 24th June and we are inviting comments from members to respond.
Consultation
The new list of food products is available here and includes fruit and vegetables, olive oil, chocolate and sweets. It would be useful to have your assessment the impact a suspension on tariffs would have on your costs, both directly for these products and in the context of your overall food sales.
You and suppliers will need to check your current sourcing. As it is possible you already pay no or limited tariffs on these types of food where exporting countries already benefit from tariff reductions and suspensions under the Developing Countries Trading Scheme (DCTS). This is support the UK gives to countries around the world and you can find more details, including a list of countries and their current preferential tariff arrangements here
BRC Response
We will only respond if we have receive relevant member comments. We don’t have the detailed knowledge of your supply chains, including current tariff arrangements, to be able to make an assessment of the cost savings the Government proposal could deliver.
If we do respond we will caveat our comments. You will be aware the key interventions we have asked Government for to mitigate higher prices are more wide ranging; energy costs for retailers and their suppliers, the cost of packaging and the burden of regulation. Whilst we welcome any help to cut costs such as the tariff intervention, it is extremely small when compared to those three elements and consequently the impact on consumers overall grocery bills.
Next Steps
Please can you send your comments before the cop 21st June to allow me to put comments together for a response.
