Food Inflation

Robbie Moore Excerpts

Thursday 15th January 2026 Westminster Hall

[Robbie Moore (Keighley and Ilkley) (Con)]

It is a pleasure to serve under your chairmanship, Dame Siobhain. I thank the hon. Member for Hornsey and Friern Barnet (Catherine West) for securing this important debate, throughout which we have heard valuable contributions from Members rightly raising concerns on behalf of their constituents. We all know that food inflation significantly impacts the cost of living by eroding household purchasing power, and that it disproportionately affects those in low-income households, leading to food insecurity. Just last November, 61% of adults in Great Britain reported an increased cost of living compared to the previous month. Much of the reason for that was linked to the inflation of food prices.

I join Members across the House in thanking those who are going out of their way to support those who need it in their own constituencies, not only with advice but through operating food banks and providing comfort and support. Imogen and her team in the Salvation Army in Keighley, who I have met many a time, do fantastic work to help families not only in Keighley but across the wider Worth valley area in my constituency. I pay particular tribute to her and her team.

[John Lamont]

During this debate, much discussion has been about food banks. It is important that we also recognise food larders—I have a number in my constituency —where large shops and supermarkets donate their food at the end of the day or before the sell-by date. They minimise food waste and enable people to access low-cost or free food that they would otherwise have to pay for.

--- Later in debate ---

[Robbie Moore]

My hon. Friend makes an excellent point, and he must have known what I was coming on to in my speech. There are many other organisations and companies that are producing excess amounts of food. We need to reduce food waste, which is ridiculously high in this country, and utilise and redistribute high-quality food through a localised logistics system or a national strategic approach. Those at both grassroots and national level need to be thanked, but much more work is needed to focus on reducing food waste to help those on lower incomes.

Lower-income families spend a large proportion of their budget on food—about 14% in the UK compared to 9% for higher-income households—making those who are more vulnerable much more exposed to price spikes. We have already heard that the price of flour has increased by 19% and milk by about 46% in a relatively short period of time. As well as the vulnerability sitting with those low-income households in terms of their purchasing power, it also sits with the primary producer: the farmers and growers who are exposed to those spikes. They are not only exposed to their own vulnerability; they also lack resilience because they are entered into contracts with unfair terms and unfair adjustment mechanisms linked to supply and demand, and they have to compete against commodities and food that can be produced at much cheaper prices in places with different standards.

While the end price for some food products fluctuates for the primary producer—we have seen that with lamb, beef and milk prices this year—for others they do not. For example, in the arable sector, cereal prices are linked to global commodity prices and some of those feed wheat prices have not really changed in the last 20 years. Exposing those primary producers to fluctuating prices depending on what they are producing, but not mitigating the increase in associated input costs for producing that food, directly hits food inflation prices.

My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) mentioned the vulnerability associated with farm-gate prices. Return rates for our farmers sit at about 1%, if not at all, and therefore many of our primary producers are not even breaking even. That is why the Baroness Batters farming profitability review was welcomed, although it was frustrating that the Government held that report back. They did not give the opportunity for it to be debated on the Floor of the House through an oral statement; they just relied on a written statement. I encourage the Minister to allow time for us to get to grips with debating such a significant and valuable report so that all Members can contribute towards it. A key recommendation in that report was around the supply chain, which, as I think has been acknowledged, is not fit for purpose and disadvantages primary producers. That is why we want more funding and power going to the Grocery Code Adjudicator.

My right hon. Friend the Member for Salisbury (John Glen) and my hon. Friend the Member for Weald of Kent (Katie Lam) highlighted the challenges around input costs increasing for our food producers and farmers. That has not been helped by policy choices and tax choices brought forward by the Labour Government in the last 18 months. Let us look at the rise in labour costs: the Bank of England says that the increasing costs associated with labour through the rise in employer national insurance, coupled with the rise in the national minimum wage from £11.44 to £12.21 an hour—a rise of about 6.7%—has dramatically impacted not only the horticultural sector, but many of those food-producing businesses and large employers.

In April, employer national insurance rose from 13.8% to 15%, while the threshold has significantly reduced, falling from £9,100 to £5,000 per employee annually. That disproportionately affects companies who employ lower-paid, younger and part-time workers, many of whom are employed in the horticultural industry and the food-producing sector. That is, of course, combined with uncertainty around levels of investment. We have seen the changes to inheritance tax come through, and that is holding back a level of investment: many of those involved in the food supply chain want to invest, but are holding back due to uncertainty about being able to mitigate the inheritance tax changes coming down the line.

As my hon. Friend the Member for Weald of Kent picked up on, we have also seen new regulation, particularly for the dairy industry, and the hurdles that those sectors need to jump through simply to get their food product on the table. New regulation is having inflationary challenges: the un-Employment Rights Bill worked its way through the House and led to stagnation in business decisions, with investment held back from moving into automation. I am being contacted, as I am sure other Members are, by many employers who are not willing to risk employing people because of the challenges associated with the Employment Rights Act. I dare say many of those are young people and those with special educational needs or learning challenges, who want to get their first step on the employment ladder, but many of those businesses are holding back, which is leading to inflationary challenges.

There is also the extended producer responsibility tax, which has been recognised by not only the British Retail Consortium but the Food and Drink Federation as creating an inflationary challenge for our food sector, estimated to be about £1.4 billion, which will be passed on to consumers by those supermarkets. The British Retail Consortium believes that 80% of those EPR costs will be passed on to consumers, which will lead to higher food prices. Then there are the increasing energy prices; the funding being taken away from our primary producers—our farmers—such as delinked payments dramatically reducing in a short period of time to £600 as an annual payment, where just two years ago they would have been receiving much more; and challenges with the fertiliser tax and sustainable farming incentive.

That just adds to the inflationary challenges associate with food prices, which are predominantly hitting those on the lowest incomes. I ask the Minister not only what the Department for Environment, Food and Rural Affairs will be doing, but what conversations they will be having with the wider Government Departments. It is fine to have a food security strategy, but if that does not sit at the heart of Government, it is for the birds. The reality is that, if it sits under a Secretary of State who has responsibility for food but is not bought into by the likes of the Chancellor and those who are making fiscal adjustments, it will not have the positive impact that it needs to; we have seen that from the last two Budgets that have come out of this Labour Government.

I also want to understand from the Minister what recommendations she and her Department will be taking forward at speed—not only the few announced by Baroness Batters’ profitability review, but that specifically address food inflation challenges, give fairer reassurance to our farmers that farm-gate prices will increase and they will get what they deserve for the primary product they are producing and, ultimately, help those on the lowest incomes across all our constituencies with the cost of living.