An inquiry has been launched into the impact of the energy crisis on the food and drink supply chain, amid concerns over what will happens to companies when the government’s six-month bailout comes to an end.
The Food and Drink Supply Chain APPG, a cross-party group of MPs set up earlier this year, will investigate whether the government needs to take further action to prioritise food companies, as the impact from the war in Ukraine and soaring prices continues to wreak havoc on supply chains.
Last month ministers confirmed companies facing average energy bill increases of between 300% and 400% would have their bills capped for six months.
However, with a review due to be carried out at Christmas into which companies will be given further support when the period runs out, MPs said their inquiry would look at ways to provide more long-term resilience against the threat of soaring food prices caused by energy inflation.
It is estimated thousands of businesses would have gone to the wall without the winter bailout.
The APPG has issued a formal call for evidence from organisations throughout the supply chain, and will also quiz industry leaders in a session on 19 October, including representatives from the NFU, FWD, BSDA and ACS.
“Ensuring that the UK food and drink supply chain produces healthy, quality, and affordable food is of fundamental importance,” said Sharon Hodgson, interim chair of the Food and Drink Supply Chain APPG.
“However, spiralling energy prices are having a major impact on food and drink businesses, intensifying the cost of doing business, and driving food price inflation to worrying levels.
“This forum will enable us to understand the short and medium-term effects the energy crisis is having on businesses, what steps we as policymakers can take to alleviate the worst of the situation, and how we can build a stronger, more resilient supply chain in the future.”
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