In recent days, the Government’s Business, Energy and Industrial Strategy (BEIS) Committee has warned that a ‘no-deal’ Brexit could have a damaging impact on the UK’s food and drink industry.
The warnings come at a time when the Food and Drink Federation (FDF) estimates the sector to be worth some £28.8 billion to the economy per year, while data from the Department for Environment, Food and Rural Affairs (DEFRA) suggests that it consistently performs well in terms of exports and international trade.
Calling on Brexit negotiators, the BEIS Committee has said that the “continued success” of the industry is “dependent” on a favourable trade deal with the European Union (EU).
Rachel Reeves, Chair of the Committee, said that an unfavourable outcome, such as a ‘no-deal’ Brexit, would have a “seismic impact” on the sector, stripping away the full access to EU markets that have helped to bolster international trade over previous years.
“To ensure the continued success of our food and drinks industry, the Government must provide clarity and certainty on our future relationship with the EU and seek continued regulatory, standards, and trading alignment with the EU in the processed food and drink sector,” she said.
Ian Wright, chief executive of the FDF, said that he shared a similar sentiment.
“We echo the Committee’s call to Government for increased customs capacity and support for businesses of all sizes to navigate the changes ahead.
“The proposed transition length is briefer than we believe would be optimum and Government must review how ‘readiness’ is progressing,” he said.