Sainsbury’s, Asda and KFC warn of food shortages and soaring prices in case of No Deal Brexit
Major retailers have written to MPs warning about the dangers of a No Deal Brexit
A NO Deal Brexit would leave shelves empty and send prices up, retail giants warned in a letter to MPs today.
A study also claimed higher fruit and veg costs will lead to thousands more fatal heart attacks and strokes — though this was dismissed by critics.
Lettuces, tomatoes and fruit could all run out in April, say chains including KFC, McDonald's and Pret A Manger.
The inflammatory claims come as MPs prepare to vote on the next steps ahead for Brexit.
In an unprecedented show of unity, the bosses of Sainsbury’s, Asda and Lidl, plus the UK arms of McDonald’s and KFC, today urged them to "find a solution that avoids the shock of a No Deal Brexit on March 29".
They told MPs their “complex, just-in-time” supply chains would be “significantly disrupted”.
The Commons could back a controversial amendment which would see Brexit delayed if Britain is heading for No Deal.
The letter from retailers warned that a third of food consumed in the UK comes from the EU, and more in March, when produce such as lettuce and tomatoes is out of season, they claimed.
LETTUCE AND TOMATOES AT RISK
It said: "In March, the situation is more acute as UK produce is out of season: 90 per cent of our lettuces, 80 per cent of our tomatoes and 70 per cent of our soft fruit is sourced from the EU at that time of year.
"We are extremely concerned that our customers will be among the first to experience the realities of a No Deal Brexit.
“For consumers, this will reduce the availability and shelf life of many products in our stores.
"We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs."
It was also signed by the bosses of Marks & Spencer, Waitrose, Pret a Manger, Lidl and Costcutter. They say shoppers will face higher prices if World Trade Organisation import tariffs, currently imposed on just ten per cent of food imports, are extended to those from the EU. Meanwhile, researchers said a No Deal Brexit could also lead to thousands more deaths as people eat less fruit and veg.
Imperial College London estimated banana prices will go up 17 per cent, citrus fruits by 14 per cent and tomatoes by 15 per cent. It said low fruit and veg intake was a “major risk factor” for cardiovascular disease. Fatal heart attacks could rise by 0.9 per cent and deadly strokes by 2.9 per cent — with more than 12,000 extra deaths from 2021 to 2030, they claim.
Labour MP Tonia Antoniazzi, a backer of the pro-EU Best for Britain campaign, said: "This shows up the lies of Brexiteers who promised lower food prices and greater prosperity after Brexit.
"Now we’re seeing study after study saying food prices will rise and our top supermarkets worried about empty shelves."
But an alternative study today found that a "Clean Brexit" could drive down the cost of food and give the economy an £80billion boost.
Economists for Free Trade said Britain's GDP would soar by 4 per cent in the event of No Deal, which would allow us to make a trade deal with America.
Edgar Miller, from Economists for Free Trade, described the research as “Project Fear at its very worst”. Christopher Snowdon, from the Institute of Economic Affairs, added: “It would be perverse to impose tariffs on food we do not produce. There are many problems with a No Deal Brexit, but paying more for bananas and satsumas is unlikely to be one of them.”
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Professor Patrick Minford said: "The effect of Britain quitting the EU customs union and quickly striking a free-trade agreement with the US would be a huge double bonus for our economy.
“We should think of the US economy as a giant supermarket, a kind of global Walmart, which we are currently barred from entering.
"But once we are out of the protectionist EU customs union, as a nation we would be allowed to go shopping at this giant Walmart. And, based on our research, we will find that prices are much lower."
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