BRITONS have been told to “get used to higher food prices” as factories are said to be “days away” from halting production due to soaring costs.
Supply chain shortages, the HGV driver crisis and inflation has already prompted food shortages and raised the price of some goods. According to the Office for National Statistics (ONS), one in six adults in the UK haven’t been able to buy essential food items in the last fortnight. All the while, Britons are also having to cope with the energy crisis that is putting major suppliers out of business and threatening another rise in bills.
Business Secretary Kwasi Kwarteng has not committed to any additional Government help for businesses struggling while the gas crisis causes chaos in the industry.
Now there are fears that more shutdowns are on the way.
David Dalton, of the British Glass Manufacturers’ Association, told the Sunday Times more companies were only “days” from having to close temporarily.
Peter Stefanovic, a lawyer and outspoken critic of the Government, commented on Twitter: “Energy costs are rising and suppliers at risk of collapse.
“Factories are days from shutdown over gas prices.
“Shoppers face empty shelves and have been told to get used to higher food prices.”
He was referring to comments made by Miguel Patricio, the boss of Kraft Heinz.
Mr Patricio admitted the firm is “raising the prices” of products including ketchup and baked beans.
Although he didn’t reveal how much prices would increase by, he blamed rocketing costs and the lack of truck drivers.
At the same time, customers themselves facing rising bills as a result of a rising energy price cap, which is the minimum cost a supplier can charge their customers.
1.7 million customers have been forced to search for new energy providers at higher rates.
Energy firms have warned that suppliers going bust will lead to households being hit with higher costs.
Paul Richards, the chief executive of Together Energy told BBC Radio 4’s Today programme: “The price cap as a mechanism is not fit for industry, nor is it fit for customers.
“When the converse situation arises and the wholesale price starts to drop sharply, the price that will be passed through to customers in April might feel like a very, very poor deal, whereas at the moment the price cap feels like a price that is too good to be. “Brinkwire Summary News”.