Taxes will hit prices on shelf

RETAILERS WARN REEVES

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any measures that further increased bills for employers could lead to higher food prices.

The supermarket chain's chief executive insisted that the impact of last year's NICs rise and the cost of new packaging rules had already "rippled through to prices on the shelf edge".

He added: "Any policies which affect the operating costs of business should be considered very, very carefully because of the very real risk they find their way back into the food system and on to prices."

Mr Hurley also stressed that longterm stability will depend on strengthening Britain's farming base.

He argued a healthy domestic agricultural sector could help to bring down prices and reduce relying on global markets. The industry leader told the BBC: "Ultimately, a resilient food sector is utterly dependent on having a resilient British farm sector."

It comes as the price of staple goods rocketed over the past year with the Food and Drink Federation warning that the rises are "steeper than anything in recent decades".

A 500g pack of lean beef mince has jumped from £3.79 at the start of the year to more than £5 in most major supermarkets.

Struggling

Sugar, whole milk and cheese have also seen sharp price rises.