British food manufacturers have criticised the budget's plan to suspend import tariffs on more than 100 products, warning it will undercut domestic production without lowering prices, Politico Europe reports.
Chancellor John Healey announced the suspensions as one of a series of cost-of-living measures. The full list, published on Wednesday, removes 16% tariffs on a range of finished bean products, including baked beans, a food closely associated with Prime Minister Andy Burnham. Imported chocolate and marmalade are also included.
Karen Betts, chief executive of the Food and Drink Federation, said the change would have no real effect on shop prices but would harm British factories already facing high energy costs. Princes Group, which makes Branston Baked Beans, made a similar point. The government says the suspensions, together with earlier ones, will cut consumer costs by £245m to £595m a year, saving households up to £21 annually on food.
Source: Politico Europe
