Fears new environment tax will raise food prices

From January 2027, sectors at risk of carbon leakage, external will be changed, about the goods being produced in the UK.

The UK’s new environmental tax, designed to reduce carbon emissions in high-polluting sectors like agriculture and transportation, is sparking fears about rising food prices. Set to take effect next year, the tax aims to encourage greener practices but could increase costs across the food supply chain, from farmers to supermarkets. These costs are expected to be passed on to consumers, potentially impacting families and low-income households the most. While the government believes the tax will help meet environmental goals, concerns are growing over its potential strain on household budgets amid already high living costs.