The Government should offer energy subsidies to food factories in the same way it does to other manufacturers, an industry group has said.
Karen Betts, chief executive of the Food and Drink Federation (FDF), said it was ‘short-sighted’ for Labour to ignore pleas for help as war in the Middle East threatens to drive up food prices.
The FDF is predicting the pace of food price rises will reach 10 per cent by the end of 2026 after the war in the region began last month.
Businesses using a lot of energy have to pay charges within their bills that help to fund government energy policies.
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But for sectors that use ‘advanced manufacturing’ – from car makers to aerospace firms – taxpayer subsidies offset this.
Betts said: ‘It doesn’t make sense, even in non-crisis times. In crisis times, it is short-sighted to exclude the food sector.’
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