New government regulations and post-Brexit border controls are hiking up costs for British retailers, Iceland has warned.
According to a report from The Times, Iceland has been complaining that the proposed post-Brexit border controls, the Windsor Framework and restrictions on the promotion of HFSS foods are “driving up costs” for businesses.
It highlighted that the new packaging recycling scheme, coming into effect next April, is estimated to add £1.7 billion in costs to UK companies.
Last month, the frozen food retailer revealed that it is set to close more stores as it struggles with high energy costs and double-digit inflation.
This followed on from closures earlier this year at its Bromsgrove, Basingstoke, Rhyl, Bedminster and Bangor branches. Iceland shuttered additional three stores in Newport, Berwick and Hexam on 22 April as it has been looking to cut spending amid soaring energy bills and a cost-of-living crisis.
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The government met with retail bosses two weeks ago to find out how they can work together to tackle rising food prices, but the event was labelled as a ‘PR stunt’, as attendees claim that the prime minister failed to address solutions to inflation, soaring costs and food insecurity.
“The government is driving up costs … It is within [its] control to look at what individual departments are doing and pause, stop and rethink,” an Iceland spokeswoman told The Times.
“Anything to reinforce the need for government to play a positive role — take action as opposed to hold meetings — in costs and ease of doing of business would help.”
A government spokeswoman also told The Times about the UK government’s commitment to support the growth of British business.
“Through the Windsor framework, we have secured a new sustainable, long-term legal framework for agrifood retail trade into Northern Ireland. We are working closely with businesses to ensure they can adapt to these new arrangements without incurring unnecessary costs.”
The British Retail Consortium has urged the government to give supermarkets “urgent clarity” over labelling under the new Windsor Framework, which may require grocery retailers to label food as ‘Not for EU’ in four different ways.
