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Retailers’ no deal reality check

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THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

 

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Who is Andy Burnham, the Prime Minister-in-waiting?

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The Greater Manchester mayor has spent years outside Westminster, but Starmer’s resignation has placed him on the brink of Number 10

ANDY BURNHAM has spent years being described as Labour’s future. Today, that future appears to have arrived.

Following Sir Keir Starmer’s resignation announcement, the Mayor of Greater Manchester is now widely regarded as the overwhelming favourite to become Labour leader and Britain’s next Prime Minister.

For many people outside politics, Burnham is best known as the outspoken mayor who challenged Boris Johnson’s government during the COVID-19 pandemic. But his political career stretches back more than twenty years and includes some of the most senior jobs in government.

Born in Merseyside in 1970, Burnham grew up in a working-class family and has always remained closely associated with his northern roots. A lifelong Everton supporter, he has often spoken about the importance of community, public services and opportunity for ordinary families.

After studying English at Cambridge University, he worked briefly in journalism before entering politics. He was elected Labour MP for Leigh in Greater Manchester in 2001 and quickly became one of the party’s rising figures.

Under Tony Blair and Gordon Brown, Burnham climbed the ministerial ladder. He served as Chief Secretary to the Treasury, Culture Secretary and later Health Secretary, giving him experience across some of the most important departments in government.

His first bid for the Labour leadership came in 2010, after Labour’s general election defeat. He lost to Ed Miliband, but the campaign raised his profile significantly. Five years later, he ran again, only to be defeated by Jeremy Corbyn in the contest that transformed Labour politics.

Rather than remain on the Westminster backbenches, Burnham made a bold move in 2017 by standing for the newly created role of Mayor of Greater Manchester. He won comfortably and went on to become one of the most recognisable regional politicians in Britain.

His national profile grew sharply during the pandemic, when he publicly challenged the UK Government over restrictions and financial support for northern cities. His confrontation with Downing Street won him praise from voters who felt their communities were being ignored by Westminster.

Supporters say Burnham’s appeal lies in his ability to connect with traditional Labour voters while remaining acceptable to the party’s centre ground. They see him as authentic, approachable and more in touch with everyday concerns than many Westminster politicians.

Politically, Burnham has championed greater devolution, arguing that power should be moved away from London to regions and nations across the UK. He has also backed transport reform, stronger public services and economic policies aimed at spreading growth beyond the South East of England.

For Wales, a Burnham premiership would be watched closely. He would inherit a Labour Party still reeling from its collapse in the Senedd election, where Plaid Cymru emerged as the dominant force in Welsh politics.

His emphasis on devolution may be welcomed in Wales, but he would face immediate pressure to show that any new relationship with the nations of the UK is more than rhetoric.

Critics argue that Burnham can be short on detail and long on broad messages. Others point out that he has spent nearly a decade outside Westminster and would need to rebuild relationships quickly in Parliament.

Despite those concerns, few figures in Labour possess his combination of experience, public recognition and electoral success. His victory in the Makerfield by-election returned him to the House of Commons and immediately intensified speculation about Starmer’s future.

Now, with Starmer stepping aside, that speculation appears close to becoming reality.

If Burnham secures the Labour leadership without a serious challenger, as many expect, he will become Britain’s next Prime Minister and inherit a government facing economic pressure, political division and a public increasingly impatient for change.

For a politician who has spent years waiting in the wings, the moment may finally have arrived.

 

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Former West Wales MS says Starmer resignation felt ‘increasingly inevitable’

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Samuel Kurtz says public frustration has grown after two years of Labour controversies and policy decisions

FORMER West Wales MS Samuel Kurtz has said Sir Keir Starmer’s resignation felt “increasingly inevitable” after months of controversy and public frustration.

The Welsh Conservative said he watched the Prime Minister’s Downing Street statement with “genuine frustration”, adding that he wanted the UK to be respected regardless of which party was in government.

Starmer announced on Monday (Jun 22) that he would resign as Prime Minister and Labour leader, just 12 days before the second anniversary of Labour’s 2024 general election victory.

Mr Kurtz said: “As a British citizen, I sighed genuine frustration while watching this morning. Whatever the political colour of the Government, I want our country to be respected at home and on the international stage.

Sam Kurtz

“But, in truth, this moment has felt increasingly inevitable as the weeks turned into months.”

He pointed to a series of controversies and policy decisions, including the Lord Alli gifts row, winter fuel allowance cuts, the Family Farm Tax, rising National Insurance, defence spending and domestic energy production.

Mr Kurtz said people “simply feel worse off”, adding that confidence in the economy remained low.

He said: “A Government should ultimately be judged on whether life is getting better for the people it serves.

“After two years marked by the controversies and a series of damaging policy decisions mentioned above, it’s difficult to argue this Government has passed that test.”

Mr Kurtz also questioned what would happen next, asking whether Labour would see an “Andy Burnham coronation”, whether Wes Streeting could build enough support, or whether an outsider could emerge.

He added that he would be watching the leadership contest “from the sidelines with interest”.

Labour is expected to open nominations for a new leader on July 9, with Starmer remaining in office until his successor is chosen.

 

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Rhun ap Iorwerth urges new deal for Wales after Starmer quits

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First Minister says next Prime Minister must focus on greater powers, fair funding and respect for Wales’ democratic mandate

FIRST MINISTER Rhun ap Iorwerth has said the next UK Prime Minister must commit to a “new relationship with Wales” as Sir Keir Starmer prepares to leave office.

The Plaid Cymru leader said he wished Sir Keir well, but warned that political instability in Westminster was affecting the Welsh Government’s ability to engage with Number 10 on issues that matter to people in Wales.

First Minister: Rhun ap Iorwerth says Wales needs greater powers, fair funding and respect from Westminster

His comments came after Starmer announced on Monday (Jun 22) that he would resign as Prime Minister and leader of the Labour Party.

Starmer will remain in Downing Street until Labour selects a successor.

Mr ap Iorwerth said: “I am disappointed that the Welsh Government’s ability to engage with the UK Prime Minister on issues which matter to the people of Wales is being hampered by the turmoil in Westminster.

“I wish Sir Keir Starmer well as he prepares to leave office. I would like to see his successor recognising that Wales needs a new relationship with Westminster, with a focus on greater powers, fair funding, and respect for the democratic mandate delivered by the people of Wales.

“My government and I will always seek a constructive relationship with whoever is in Number 10, but we have clear expectations that the respect agenda must work both ways.”

In a shorter statement posted online, the First Minister added: “The next PM must commit to a new relationship with Wales — with a focus on greater powers, fair funding and respect for our mandate.”

Labour’s National Executive Committee is expected to open nominations for the party leadership on July 9, with the process due to be completed before Parliament returns from its summer break in September if a contest is required.

Andy Burnham is widely expected to enter the race after returning to Parliament following his victory in the Makerfield by-election.

Reform

Responding to the resignation, Reform UK Sir Fynwy Torfaen MS Laura Anne Jones said the change in Labour’s leadership would not erase the party’s record of failure or reverse the country’s decline.

Ms Jones said: “History will judge Keir Starmer as one of the worst Prime Ministers this country has ever seen. He failed to properly invest in our national defence at a time of growing global instability, doubled down on ideological net zero policies that have driven up costs for families and businesses that I represent, Labour refused to back Britain’s own oil and gas industry, backed the disastrous family farm tax that led to suicides and presided over a Government that too often put political dogma ahead of common sense.”

She added: “It is also worth remembering that Monmouthshire MP Catherine Fookes was Sir Keir Starmer’s top advisor as his Parliamentary Private Secretary. His record was not created in isolation, and those who stood beside him cannot now pretend they had nothing to do with it.”

The Reform MS stressed that in Wales, Labour, with the support of Plaid Cymru, spent “more than a quarter of a century running down public services.”

She said:m “They left us with record NHS waiting lists, struggling schools, crumbling roads, declining rural communities and an economy that has held Wales back. The faces may change, but that record cannot. Labour blindly follow ideological dogma that is destroying Britain.”

Ms Jones concluded: “This country does not need another political rebrand or another round of excuses. It needs a completely different direction before its too late. Reform UK will continue holding Governments to account across Britain, offering the common sense alternative that people are crying out for. But it is now more essential than ever that the electorate put Reform into Government in Westminster. The establishment parties of the Tories and Labour have failed our country, it’s now time for something new.”

Liberal Democrats

Welsh Liberal Democrats Spokesperson David Chadwick MP said: “Changing the person at the top won’t change much unless Labour finally confronts the structural problems that continue to hold Wales back.

“Despite Labour’s catastrophic Senedd election results, there is little sign that Westminster Labour’s attitude towards Wales has changed.

“The next Prime Minister must also learn a lesson that the last five have ignored: you cannot sustainably grow the economy without pursuing a closer relationship with the EU or introducing a fairer funding formula for Wales that recognises the unique needs of our population.

“Wales needs more than a new Prime Minister. We need a Westminster government that finally takes Wales seriously.”

The change of leadership comes at a sensitive time for Wales, with questions over fair funding, the future of devolution, public services and the relationship between Cardiff Bay and Westminster likely to feature prominently in the weeks ahead.

 

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