Food and Drug Costs Predicted To Soar as NIC Increases Bite

The Cold Chain Federation today sounded the alarm over a significant increase in the cost of supplying vital temperature-controlled food and drugs. This surge is directly attributed to recent National Insurance Contributions (NIC) increases announced in the recent budget.

Coupled with the weekend’s news of supermarkets facing a staggering £2.5 billion increase in NIC costs over the next five years, this will likely see a hit in the consumer’s wallet.

The cold chain industry, responsible for delivering chilled, frozen, and pharmaceutical products, faces an additional £620 million burden during this parliamentary term.

Phil Pluck, CEO of the Cold Chain Federation, expressed deep concern: “This is just the beginning. The £620 million increase will inevitably lead to higher prices for consumers. Coupled with the impending business rates review, the UK public can expect to pay more for essential food and medicine.”

Pluck further emphasised the negative impact on the industry’s ability to recruit and retain talent: “Since the budget announcement, cold chain operators have reported that increased wage bills are hindering their ability to create new jobs and offer competitive salaries. The government’s economic strategy risks stifling growth, suppressing wages, and ultimately placing a greater financial burden on consumers.”

The Cold Chain Federation urges the government to reconsider the impact of recent policy decisions on essential industries like cold chain, which plays a critical role in ensuring the safety and availability of food and medicine.

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