Why cheese, fish and flowers could all soon cost more because of new Brexit rules
New Brexit border controls will leave British consumers and businesses facing more than £500m in increased costs and possible delays – as well as shortages of food and fresh flowers imported from the European Union.
The new rules are intended to protect biosecurity by imposing controls on plant and animal products considered a “medium” risk. These include five categories of cut flowers, cheese and other dairy produce, chilled and frozen meat, and fish.
From 31 January, each shipment will have to be accompanied by a health certificate, provided by a local vet in the case of animal produce, and, from 30 April, shipments will be subject to physical checks at the British border.
The government’s modelling says the new controls will cost industry £330m, while the grocery industry has warned that £200m could be added to fresh fruit and vegetable prices should checks be introduced in the future.
There is also the prospect of delays caused by inspections of faulty paperwork, which could derail supply chains that rely entirely on fast turnaround of goods.
British importers have told Sky News that the new rules, which have already been delayed five times in three years, will add up to 17% to shipping costs, leading to higher prices for consumers.
European companies and industry groups say the controls are unnecessary as they replicate checks already made in the EU, and that Brexit is adding bureaucracy and cost to dealing with the UK.
The new import controls are a consequence of Britain having left both the single market and the customs union when the trade and co-operation deal with the EU came into force in January 2021.
While UK exporters to Europe were immediately subject to customs rules, the British government waived import controls to avoid damaging the economy and food supply.
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On five occasions since 2021 ministers planned and then cancelled their introduction, in part because of fears that interrupting food supplies from the EU would exacerbate the cost of living crisis.
Almost 80% of UK vegetable imports and 40% of fruit comes from Europe.
In the Netherlands, the horticulture industry has called for a further delay to controls that will impact its £1bn-a-year trade with the UK, the second largest in Europe behind Germany, which accounts for around 90% of our cut flower and plant imports.
‘We’re going back in time’
Dutch flower wholesaler Heemskerk has been exporting to the UK since before it joined the common market.
The UK now requires that five types of flowers, including orchids and carnations, be checked in factories by a local inspector for two species of leaf mites that destroy foliage.
Managing director Nick van Bommel points out that the checks replicate the same processes made at the Dutch border if the plants are imported to Europe, and by his staff for trade within the EU.
Managing director of Dutch flower wholesaler Heemskerk Nick van Bommel
“We’re going back in time. They want to have health inspections that we haven’t carried out for more than thirty years, and now from next week on we start again,” he said.
“It won’t help anybody, but it will make an awful lot of costs and somebody has to pay the bill at the end. I’m 100% sure that the last customer, the British consumer, has to pay for this.”
The Dutch association of floriculture wholesalers has asked the British government to delay the changes by another year.
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Its spokesperson Tim Rozendaal told Sky News: “If Brexit was about cutting down Brussels’s red tape and bringing down costs, I don’t see the point.
“Anything that our industry has been facing since Brexit is longer red tape, additional costs and bureaucracy.”
At New Covent Garden Market in London, which receives shipments from the Netherlands within hours of flowers being cut, wholesalers are equally sceptical.
Freddie Heathcote, owner of Green & Bloom, calculates his shipping costs will rise by up to 17% – and the knock-on to consumers could be increases of 20% to 50% once the physical inspection regime is in place.
Freddie Heathcote, owner of Green & Bloom
“We have been told the charge for consignments crossing at Dover or Folkestone will be £20 to £43 per category item listed on the consignment.
“We imported 28 different consignment lines tonight from one supplier, which would be £560 to £1,204 to clear the border control point on a total invoice of £7,000. That’s between 8% and 17% additional cost on an average import for us.”
The food industry is concerned too.
Patricia Michelson, founder of London cheese chain La Fromagerie, has been importing artisan cheese from across Europe for more than 40 years. She is concerned that the cost and hassle of sourcing veterinary checks in Europe will dissuade some suppliers.
Patricia Michelson, founder of London cheese chain La Fromagerie
“We deal with suppliers who are one or two guys in a dairy with 50 or 100 sheep or 20 cows. Do they want to be paying for this new certificate to send to us?
“I assure you that most of them will say no. So the onus is on us… that means another extra cost, on top of all the costs so far to bring the produce in.”
La Fromagerie
‘Disturbing confusion’
After months of preparation this week the Department of Environment, Food and Rural Affairs added a host of common fruit and vegetables to the list of medium risk produce.
It initially said the produce would only face physical checks from October, but 48 hours later changed the rules again, saying they would give three months notice when health declarations and physical checks are required.
The late change attracted criticism from leading trade body the Institute of Export and International Trade.
“The confusion caused by the announcement… is disturbing, particularly at a point when significant changes are being planned for the general operation of the UK border,” said its general secretary Marco Forgione.
A government spokesman said: “We are committed to delivering the most advanced border in the world. The Border Target Operating Model is key to delivering this, protecting the UK’s biosecurity from potentially harmful pests and diseases and maintaining trust in our exports.
“We are taking a phased approach – including initially not requiring pre-notification and inspections for EU medium risk fruit and vegetables and other medium risk goods – to support businesses and ensure the efficient trade is maintained between the EU and Great Britain.”
US stocks have fallen for five days running as traders nervously await a speech from Federal Reserve chairman Jerome Powell.
Central bankers are gathering for an annual summit in Jackson Hole, Wyoming, where Mr Powell could indicate whether interest rates will be cut soon.
The Fed hasn’t reduced the cost of borrowing since December – despite repeated calls from Donald Trump to do so.
By contrast, the European Central Bank has slashed rates four times in 2025, with the Bank of England opting for three cuts so far this year.
Federal Reserve chairman Jerome Powell. Pic: Reuters
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The US president has nicknamed the Fed chairman “Too Late” Jerome Powell on social media – and has repeatedly called for his resignation.
But Mr Powell has argued that interest rates can only be lowered when there are clear signs that inflation is returning to its 2% target.
Today will mark his final keynote speech at Jackson Hole before his eight-year tenure at the Federal Reserve ends in May 2026.
Past addresses have been known to move the markets, with reaction often amplified because of lower trading volumes during the summer months.
Figures from the CME FedWatch tool show expectations for a US interest rate cut when policymakers next meet in September are on the decline.
One week ago, the probability of a 0.25 percentage point cut was priced in at 85.4%. But that fell to 82.4% on Thursday – and has dropped further to 73.3% at the time of writing.
It comes as other senior officials within the Federal Reserve, speaking on the sidelines of the three-day summit in Jackson Hole, continued to express caution.
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Beth Hammack, president of the Cleveland Fed, told Yahoo Finance: “With the data I have right now and with the information I have, if the meeting was tomorrow, I would not see a case for reducing interest rates.”
Of particular concern is the impact that Donald Trump’s tariffs are having on inflation – both in terms of costs for businesses, and what consumers ultimately pay.
Just this week, Walmart – the world’s biggest retailer – warned tariffs are squeezing its profit margins and leading to higher prices at the till.
Consumer confidence has reached its highest point this year – driven by the Bank of England’s interest rate cuts.
The long-running GfK Consumer Confidence Index shows an improvement in how Britons have felt about their personal finances over the past 12 months, as well as in the year ahead.
August’s overall index score rose by two points to -17. This is the best reading since December, but shows consumers remain cautious in the current economic climate.
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GfK’s consumer insights director Neil Bellamy said the improving figures come after the cost of borrowing fell to its lowest level in two years.
He added: “The improved sentiment on personal finances is welcome, but there are many clouds on the horizon in the form of inflation – the highest since January 2024 – and rising unemployment.
“There’s no shortage of speculation, too, about what the autumn budget will bring in terms of tax rises.”
Mr Bellamy went on to warn that many British consumers remain in “wait-and-see mode”, meaning any surprise economic changes could result in a sudden shift in sentiment.
In other developments, a recent survey by the British Retail Consortium suggests 42% of shoppers now expect to spend more on groceries in the next three months.
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Some of the country’s biggest retailers have also written to Chancellor Rachel Reeves – warning further tax rises in the budget could affect living standards.
Executives from John Lewis, Tesco, Sainsbury’s, Aldi and Lidl were among the signatories, with Ms Reeves told the recent hike to employer’s national insurance has had a huge impact.
“As retailers, we have done everything we can to shield our customers from the worst inflationary pressures but as they persist, it is becoming more and more challenging for us to absorb the cost pressures we face,” the letter said.
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In response, a Treasury spokesperson said the government is “pro-business”, with 380,000 jobs created since Sir Keir Starmer entered Downing Street.
“The tax decisions we took at the budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and giving a wage boost for millions as we deliver on the plan for change,” they added.
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