The BTOM line? New Brexit import rules will hammer hospitality
Border checks on fresh produce arriving from the EU will limit choice and push up prices for consumers, says Andrea Rasca
The hospitality sector finds itself at a fork in the road. While the UK seemingly encourages free trade and a dynamic hospitality sector, incoming changes to how the country imports food from the EU could spell disaster for our pubs, restaurants and the communities that have built themselves around them.
The impact of the UK’s incoming border rules
The UK government’s proposed Border Target Operating Model (BTOM), set to be rolled out from the end of April, will have devastating consequences on the UK hospitality sector and our food supply chain. The issue is that lengthy checks on imports from the EU will affect our ability to easily access fresh produce. The new rules require checks on 100 per cent of meat, vegetables and fruit imports from the EU, requiring food to spend more time at border posts, likely resulting in spoiled and damaged produce and ultimately higher prices for consumers.
Businesses are already seeing the negatives of current Brexit import rules on the supply of quality produce. In my case, a large number of suppliers have already confided about the issues they have, specifically when it comes to importing artisanal meats and cheeses. For the EU farmers and producers, these new rules will leave cause for concern with increased administrative burdens on those looking to sell to the UK. Owing to these new requirements for meat and dairy exports to be more thoroughly checked, alongside filling in a lengthy form, many suppliers will struggle to comply with these new regulations.
Many specialist retailers rely on temperature-sensitive fresh produce from the EU and any increase in the length of import time will make it difficult to continue operating normally. This can result in higher costs when searching for alternative suppliers who are willing and able to go through all this red tape to provide fresh, organic, sustainable produce to the UK. Hospitality businesses, retailers and delis need support from the government through these difficult economic times, rather than additional rules which make it more difficult to operate at normal capacity.
Given the recession and the ongoing cost-of-living crisis, the government must help the hospitality sector survive and thrive. My recommendation is for the government to take a series of actions that will help alleviate the pressures these changes will bring, both on our margins, and people’s stomachs.
The new rules could also have dire consequences for nutrition and the ability for families to access healthy and affordable food in the UK. Recently published findings from the BMJ have broken down the disastrous immediate and long-term effects that ultra-processed foods have on our well-being. These new import rules could spell disaster, as the sector may be forced to resort to using more of these in a bid to offset costs. We must see a comprehensive framework put in place to improve access to healthy, nutritious foods. The government has a responsibility to deliver a fair food system for all families and communities.
Today, in a bid to build better business resilience, we are hosting a two-day event in Mercato Mayfair; the Better Hospitality Conference with Tried and Supplied. Leaders across the food and hospitality industries will be meeting to discuss how to navigate the ongoing challenges. With enough support, the hospitality sector will have the power to see through this recession, while shoring up for the future.
Resilience in a time of crisis
There are few industries that are tougher than ours. We got through the pandemic, evolving at pace to match changing consumer habits while navigating a minefield of logistical issues. The countless pubs and restaurants that we lost not only impacted those businesses but also the communities built around them.
Yet in a time where the hospitality sector receives blow after blow – there are reasons to be hopeful.
In particular, the recent levelling up allocation to Canary Wharf can jumpstart London’s business district. Announced in the spring budget, the 750 new homes set to be built will bring stability to the area, as more businesses move out of major office space and work-from-home policies have impacted day-to-day consumer spending habits. Yet these import changes would have a direct effect on the consumers’ bottom line and their ability to treat themselves to a meal out.
The UK has become home to some of the world’s most brilliant chefs, but changes to how the UK operates could change this and set back the hospitality industry by decades. If the government genuinely supports the hospitality sector and is prepared to fight for it, they should reconsider these new import rules.
Andrea Rasca is the founder and CEO of Mercato Metropolitano. The Better Hospitality Conference 2024 is being held today and tomorrow at Mayfair Mercato.