The United Kingdom may soon confront escalated food prices and potential shortages as new post-Brexit border fees are slated to be implemented this week, as indicated by industry experts. A maximum fee of £145 will be imposed on imported plant and animal products, such as cheese and fish, entering the UK via the Port of Dover and Eurotunnel starting Tuesday. Nigel Jenney, chief executive of the Fresh Produce Consortium, asserted that the upcoming alteration will have a colossal impact on the nation’s food supply, forecasting the likelihood of price hikes due to unsustainable industry costs. Similarly, James Barnes, chairman of the Horticultural Trades Association, cautioned that the new regulations appear hastily constructed and are expected to unquestionably inflate costs, potentially resulting in depleted supermarket shelves. He also indicated potential repercussions on EU businesses trading into the UK due to pricing challenges. Another concern is the potential impact on potato prices due to spudflation, following delays and shortages caused by wet weather affecting the crop.
Moreover, there has been a marked escalation in property prices in the UK driven by the demand for smaller residences. Following a significant increase in interest rates, property prices have notably surged, especially among first-time buyers. Smaller properties such as flats and terraced houses have experienced the most substantial price growth, as buyers adjust their expectations to compensate for heightened borrowing expenses. Nonetheless, the housing market confronts obstacles stemming from greater interest rates affecting mortgage affordability and an ongoing shortage of new properties.
In relation to consumer disputes, an inquiry was raised concerning a company failing to honour a written warranty for substandard construction work. Consumer disputes expert Scott Dixon clarified that such issues fall under the Consumer Rights Act 2015, and advised obtaining at least three quotes from other traders to evaluate the cost of rectifying the issue. He also recommended resorting to the small claims court as a last resort if necessary.
Shifting to the latest economic updates, the FTSE 100 commenced the week on a fresh high, driven by gains in the mining and financial sectors. However, consumer-facing brands such as JD Sports and Flutter Entertainment saw a decline in performance. Additionally, the market has been influenced by various factors, including elevated oil prices and peace negotiations between Israel and Hamas. Furthermore, new figures from Halifax have indicated a surge in annual property price growth, propelled by the demand for smaller residences, with first-time buyers accounting for the largest share of homes purchased with a mortgage in nearly three decades.
In addition, with the UK contending with rising mortgage rates and a potential labour dispute, the housing market could witness significant changes. The impact of these developments on the economy and consumer behaviour in the upcoming weeks remains to be seen.
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