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Food Price Inflation
23 March 2023
Lead MP
Mark Spencer
Debate Type
Ministerial Statement
Tags
EnergyBusiness & TradeBenefits & WelfareAgriculture & Rural Affairs
Other Contributors: 25
At a Glance
Mark Spencer raised concerns about food price inflation in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EnergyBusiness & TradeBenefits & WelfareAgriculture & Rural Affairs
Government Statement
The Minister acknowledges the rise in food prices, attributing it to various factors including global inflation, supply chain pressures, and utility price hikes. He highlights that vegetable shortages have not been a primary driver of recent food price increases. The Government has committed £37 billion towards supporting households with living costs, already distributing £1 billion for essential items. For the 2023-24 financial year, eligible benefits will receive up to £900 in cost-of-living payments. State pensions and benefit rates are set to increase by 10.1% from April. Free school meal eligibility is being permanently extended to all children without recourse to public funds. The Minister emphasises the resilience of the food supply chain, noting its ability to withstand recent challenges.
Jim McMahon
Lab Co-op
Oldham West, Chadderton and Royton
Question
Critiques the absence of the Secretary of State during a time of crisis and highlights that rising food prices are exacerbating the cost-of-living crisis. He notes the reduction in agricultural producers and demands action on farming payments, labour shortages, energy costs, feed and fertiliser prices, and avian flu impact.
Minister reply
Acknowledges the challenges posed by inflation but emphasises the global pressures impacting food prices, such as increased fertiliser costs due to global gas price spikes. He notes that seasonal agricultural worker visas have been increased to 45,000.
Harriett Baldwin
Con
West Worcestershire
Question
Questions whether the primary responsibility for inflation control lies with the Bank of England through its remit letter, and if fiscal policy should help halve inflation.
Minister reply
Pays tribute to Harriet Baldwin's work on the Treasury Committee. Acknowledges that getting inflation under control is a priority, emphasising continued Government effort across departments.
Question
Expresses concern over food price inflation and its disproportionate impact on low-income households. Suggests an essentials guarantee proposed by the Joseph Rowntree Foundation and Trussell Trust to address food poverty.
Minister reply
Argues that being part of the UK helps tackle challenges better than separation, recognising that fuel duty freezes support both food producers and processing industries.
Question
Compliments the Chancellor's decision to continue freezing fuel duty, highlighting its benefit for food producers and processors.
Minister reply
Agrees that maintaining low fuel costs is crucial in managing inflation, as significant rises can drive up prices dramatically.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Question
Rising food price inflation is terrifying for many families, especially those using food banks despite being in full-time employment. What more can the Government do to help manufacturers and suppliers bring costs down?
Minister reply
The Government continue to have regular meetings with sectors throughout the supply chain to ensure fairness and cooperation, aiming to coordinate discussions for an effective food supply system.
Question
With measures helping people with cost of living pressures, can the Minister assure us that inflation will be halved by the end of the year as promised by the Prime Minister?
Minister reply
The Government continue to monitor inflation and are seeing signs that food price inflation has peaked, with some driving factors like wholesale gas prices easing.
Wendy Chamberlain
Lib Dem
North East Fife
Question
Will the Minister agree to meet me and discuss the findings of the report on ending the need for food banks?
Minister reply
The Minister is happy to read the report and meet with the hon. Lady at a future date.
Bob Blackman
Con
Harrow East
Question
What action is being taken to ensure a long-term food security plan that encourages domestic production?
Minister reply
The Government are moving away from the common agricultural policy towards environmental land management schemes to help farmers produce food while positively impacting the environment and biodiversity.
Clive Efford
Lab
Eltham
Question
Why is UK food price inflation so high compared to other countries, with milk prices increasing by 42% and eggs by 32%, despite being below European spikes?
Minister reply
The UK has a robust supply chain and lower food inflation compared to Europe. However, the Government recognise the challenge faced by constituents and have introduced support for household bills.
Question
How can the Department help producers facing high electricity costs that prevent them from growing crops?
Minister reply
The Minister is working with sectors to support those who produce food in greenhouses and visited Thanet Earth, a UK-based producer linked to an energy supply plant.
Question
Will the Government apologise for causing higher food prices due to Brexit and allow constituents access to the single market like those in Northern Ireland?
Minister reply
Brexit makes little difference to trading relationships. The UK imports products from Europe, while supporting domestic producers.
Kerry McCarthy
Lab
Bristol East
Question
When will the Government consult on public sector procurement for an affordable and sustainable supply chain?
Minister reply
The Government remain committed to procuring top-quality, UK-produced food as soon as possible.
Navendu Mishra
Lab
Stockport
Question
Is the Minister proud of his Government’s record on food poverty with thousands of emergency food parcels distributed daily?
Minister reply
The number of households in absolute poverty has gone down since the Government came to power, but the Minister recognises consumer challenges and introduced a £37 billion package for support.
Question
Does the Minister believe that food price inflation will result in more people using food banks and what are his thoughts on supporting affordable food networks?
Minister reply
The Government take this challenge seriously, working with other Departments to help households cope. They see signs of a peak in food price inflation with import costs starting to reduce.
Question
Will the Minister stop making excuses and do something about the crumbling food bank network?
Minister reply
The Government deal with facts, such as the impact of Putin's illegal invasion on global gas prices. Retailers are doing a good job in keeping prices down compared to Europe.
Question
Our constituents who use first-stage infant formula with their babies are experiencing soaring costs, and those who are unable to afford these increased prices are watering down the formula to make it last. Such products should be treated with the utmost caution, as unsuitable alternatives can damage the health of babies. What does the Minister have to say to families in our constituencies who are not able to afford infant formula for their babies? What action will he take to ensure these products are affordable and available to all?
Minister reply
I recognise how challenging that situation must be. That is why the Government are putting in huge support packages to try to help households cope with the increase in energy and food prices. We will continue to look after the most vulnerable people in society, offering them support to help them through this challenging time.
Darren Jones
Lab
Bristol North West
Question
Many food and drink businesses express their frustrations to me about the lack of co-ordination between the Minister’s Department and BEIS. Given the influence of inflation, labour market challenges, and the need for technology adoption and automation in the sector, is it not time for a proper, co-ordinated sector deal between BEIS, DIT and the Minister’s Department for the food and drink industry?
Minister reply
We do talk to our colleagues across government, and we invest a huge amount in technology to help develop new technologies to reduce the price of food production. We are running competitions to encourage robotics and computerised systems to help in the processing sector. We have also introduced the gene editing Bill—the Genetic Technology (Precision Breeding) Bill—which I hope will reach Royal Assent very soon.
Question
I grew up in West Dunbartonshire in the 1970s and 1980s, when de-industrialisation was compounded by recession after recession. Weak economic growth became the norm, well-paid skilled jobs were replaced with minimum wage service industry jobs creating a vicious circle that seems difficult to escape. Will the Minister advise my constituents, and similar constituents across these islands, who are living close to the breadline what the Government are doing for them, as Brexit Britain has brought about this 1970s food inflation?
Minister reply
There is a fundamental difference between today and the 1970s: employment is at a very high level and lots of jobs are available. However, we recognise some constituents face challenges. That is why the Chancellor introduced a huge package of support to help people cope with this cost of living challenge.
Kim Johnson
Lab
Liverpool Riverside
Question
The Minister mentioned the number of children accessing free school meals. We have nearly 4 million children living in poverty, so will he explain what assessment he has undertaken of the impact of food price inflation on the delivery of school meals given that schools receive only £2.41 per pupil and that amount increased by only 7p over the last 13 years?
Minister reply
We are supporting more children now than at any point in history, offering them support to help them through this challenge. School meals are the responsibility of the Department for Education, but we consistently have conversations with our friends across government to coordinate our approach.
Chris Elmore
Lab
Bridgend
Question
There are 10 food pantries across my constituency supplying surplus food from supermarkets for between £5 and £10 per bag. The demand is so high that volunteers cannot keep up with people’s weekly shops at these pantries. FareShare, which coordinates the surplus food, is running out of surplus food. What will the Minister do to start dealing with the huge problem of constituents paying for a week’s food of whatever they can find for £10, which is almost past its sell-by date, but suppliers are running out?
Minister reply
The hon. Gentleman is right to draw attention to the support our retailers give people facing this challenge; they work with charities in that sector to help supply food to the most vulnerable. The Government also play their part by supporting people through this challenge.
Rachael Maskell
Lab Co-op
York Central
Question
My concern is here and now: food banks in York are running out of food because demand is going through the roof, and people cannot afford to make donations. For my part, I am having a food drive on 31 March and 1 April for our city to donate. What is the Minister doing on his part? Will he make grants available to food banks so that they can actually feed our city?
Minister reply
We continue to work with retailers, manufacturers, and primary producers to maintain a robust food supply chain. I pay tribute to the work that food banks do in the hon. Lady’s constituency to support the most vulnerable; we also play our part by supporting people through this challenge.
Richard Foord
Lib Dem
Honiton and Sidmouth
Question
Our farmers were promised full replacement of EU support after leaving the EU. Instead, their subsidies are being phased out with a basic payment cut of 20% this year; in April, farmers’ energy bill support will be cut by up to 85%. Given those 2016 Government promises to farmers, will the Minister commit to stopping the phasing out of support payments until the new environmental land management schemes are fully rolled out so that we can bring down food prices?
Minister reply
We are moving away from the common agricultural policy towards environmental land management schemes. Listening to him and his party would cut off farmers’ access to these schemes, which cover countryside stewardship; this would crash the rural economy and destroy the opportunity for farmers to move to a new system.
Question
Food retailers report that food packaging costs have risen significantly. That contributes to higher prices in shops. What conversations have there been about supporting businesses in reducing packaging, or sourcing more affordable materials?
Minister reply
There have been many conversations across government and with producers, manufacturers, and retailers on reducing plastic packaging and making it reusable and recyclable at less cost to the consumer.
Jim Shannon
DUP
Strangford
Question
I thank the Minister very much for his responses. He understands the issues well. He and the Government are doing their best. I hail from a constituency that grows the best potatoes: Comber potatoes. Everyone knows they are the best in the UK, and indeed the world. My constituency ships ready-to-eat mash and other veg throughout the United Kingdom. The potential is there for us to be self-sustaining. Will the Minister outline how he intends to support the farming industry so that it can make more British produce to sell in the internal market which will lower the price of staple foods? That, in turn, will lower inflation for all.
Minister reply
I thank the hon. Gentleman for his question and interest in this area. We are self-sufficient in lamb; very close to being self-sufficient in beef; more than 100% self-sufficient in liquid milk. The Windsor framework now allows Northern Irish farmers to plant Scottish seed potatoes without interference.
Shadow Comment
Jim McMahon
Shadow Comment
The shadow Secretary criticises the absence of the main Secretary of State during a time of crisis. He argues that rising food prices are exacerbating the cost-of-living crisis, threatening mortgage payments and potentially leading to further interest rate hikes. McMahon points out that agricultural producers have reduced production or exited completely, highlighting a decrease in 7,000 food producers since 2019. He demands immediate action from the Government on farming payments, labour shortages, energy costs, feed and fertiliser prices, and avian flu impact.
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