Tesco Chairman Predicts "Very Modest" Impact on Food Prices Post-Brexit Deal

As the new post-Brexit trade deal takes effect on January 1, Tesco chairman John Allan has provided reassurance that the impact on food prices will be minimal. The EU, which currently supplies 26% of Britain's food and drink, will still be a significant player in the market. However, Allan believes that the tariffs and administrative costs associated with importing and exporting goods will have a "very modest" effect on prices.

Key Takeaways:

• Tesco chairman John Allan predicts a "very modest" impact on food prices due to the new post-Brexit trade deal.
• The EU will continue to supply 26% of Britain's food and drink, despite Britain leaving the European trading area.
• Allan expects administrative costs to increase, but believes this will have a minimal effect on consumer prices.
• The chairman warns that food prices could rise between 3% and 5% if a deal wasn't done, citing tariffs as the main cause of price increases.
• Tesco was well-prepared to continue supplying its Northern Ireland supermarkets even without a trade deal.
• Allan does not expect significant benefits from the new trade deal, stating that the company would not seek food from countries with lower food standards.

Statistics:

• 26%: the percentage of Britain's food and drink supplied by the EU.
• 55%: the percentage of Britain's food and drink supplied by the UK.
• 3-5%: the potential rise in food prices if a trade deal wasn't done, according to Allan.
• 40 years: the length of time Britain was part of the European trading area.
• 1 January: the date when the new post-Brexit trade deal takes effect.

Sources:

• BBC Radio 4's The World This Weekend (exact date not specified).

Note: The source citation is the exact format provided in the original material.