The Cold Chain Federation (CCF) is sounding the alarm over the “significant” increase in the cost of supplying temperature-controlled food and drugs, thanks to the increase in employers’ National Insurance Contributions (NIC), announced in the recent budget.
The trade body estimates that the cold chain industry faces an additional £620m burden during this parliamentary term as a result of the increase in NICs.
CCF is warning that this additional burden to operators, coupled with the weekend’s news of supermarkets facing a £2.5bn increase in NIC costs over the next five years, is likely to lead to rising retail prices.
Phil Pluck, CCF chief executive, said: “This is just the beginning. The £620m 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 added that the increase in NIC payments will also hamper the industry’s ability to recruit and retain talent.
He commented: “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 CCF is urging the government to reconsider the impact of recent policy decisions on essential industries like cold chain, which, it said, plays a critical role in ensuring the safety and availability of food and medicine.
