Iceland: Red tape and rules are ‘driving up costs’ for retailers

Iceland Foods
// New government regulations and post-Brexit border controls are adding further cost burdens for British retailers, Iceland warns
// “The government is driving up costs,” the frozen food retailer said

Iceland has warned that new government regulations and Brexit red tape are piling up costs for British retailers.

The frozen food retailer complained that the proposed post-Brexit border controls and restrictions on the promotion of foods high in fat, sugar and salt are “driving up costs” for businesses, The Times reported.

It highlighted that the new packaging recycling scheme, coming into effect next April, is estimated to add £1.7bn in costs to businesses.


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“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.”

The government met with retail bosses last month to find out how they can work together to tackle rising food prices.

Over the weekend, it was revealed that Rishi Sunak was drawing up plans to ask supermarkets to bring in voluntary price caps on essential products.

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2 COMMENTS

  1. with the red tape demands piling for supply to Northern Ireland under the Windsor Framework and supply to GB under the Border Operating model [both due to implement from Oct 2023], I don’t understand why traders are not shouting from the rooftops that the controls and influence is forcing costs into supply chains at a time of high inflation.

    The food industry and retailers will likely bear the brunt of the blame for this yet it is poorly through through policies and decisions that is the root cause.

    Fair play to Iceland for calling this out; many others from across industry need to follow before supply to Northern Ireland and Great Britain is impacted.

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