Food Sector Warns Westminster Is “Fuelling The Fire” Of Inflation

Britain’s food and grocery sector has launched a blistering critique of the government, accusing ministers of adding to the cost-of-living burden on consumers through policy inertia and regulatory missteps.

Speaking to the Financial Times, senior executives representing major supermarket chains, food manufacturers and farming groups warned that the government’s failure to act decisively is exacerbating rising grocery bills. They argue that future price relief is unlikely unless the government intervenes more aggressively.

“Lack of action” as costs mount

Industry leaders say supermarkets are grappling with multiple forms of pressure — from higher labour and energy costs, to import hurdles and supply chain bottlenecks. In their view, the government’s responses so far amount to little more than “lip service.”

One executive told the FT that planned policy reviews and vague promises of reform are inadequate to stem the inflationary tide, especially when consumers are already stretched. Another senior voice described last week’s government announcement on tackling unfair practices in food supply chains as lacking teeth.

Key grievances

Among the major complaints from the food sector are:

• Regulation and bureaucracy: Companies claim burdensome red tape and delayed approvals are slowing investment and innovation, particularly in areas like automation and sustainability.

• Labour shortages: They argue current immigration and labour policies hamper efforts to recruit and retain workers across fields such as processing, logistics and agriculture.

• Supply chain constraints: A combination of disrupted logistics, port congestion and rising freight costs is pushing up prices, especially for imported ingredients.

• Lack of fiscal support: While some sectors have benefited from targeted subsidies or relief programmes, grocery and food firms say comparable support has been patchy or overdue.

Government response

A spokesperson from the Department for Environment, Food & Rural Affairs (DEFRA) responded that the government is actively engaging with industry players and has launched “a robust review” of unfair trading practices. The spokesperson denied that ministers are ignoring the challenges, pointing to forthcoming regulatory reforms and dialogues with retailers.

However, industry scepticism remains high. One senior supermarket executive quipped that without structural change, “we’ll just be rearranging deck chairs on a sinking ship.”

Outlook

The standoff between food sector and state comes at a perilous time for households, with food price inflation already contributing significantly to the squeeze on real incomes. Unless Westminster offers more decisive backing — be it through funding, regulatory relief or labour policy shifts — the sector warns further price pressures are virtually inevitable.

For consumers, the consequence could be more rounds of grim “which shelf can I afford” decisions. For the government, it is a test of whether it can act with the urgency required — or risk seeing public anger deepen ahead of the next election.