Proactive Investors - The chairman of Marks and Spencer Group PLC (LON:MKS) has become the latest business leader to criticise the government’s economic policy, as he described its plans for post-Brexit trade as “baffling” and “overbearing”.
Former Conservative MP, Archie Norman, said the plans for solving the Northern Irish Protocol stand-off would lead to higher prices and give EU companies a competitive advantage over their UK rivals.
His comments on planned labelling changes for retailers came in a letter to the foreign secretary, excerpts of which have been seen by the Daily Telegraph.
“The overbearing costs of a labelling regime would raise prices and reduce choice for consumers, further disadvantage UK farmers and suppliers and impact UK retailers’ competitiveness in other international markets,” Norman was quoted as saying in the Telegraph report.
“The simple fact is retailers already operate in real-time digital information – day or night, at the click of a button, we can locate our products, be that in a depot, in transit or in a store.
“In a digital era – when one tap of a mobile can check-in a customer at a store and locate their order in under 60 seconds, it’s baffling that the Government and EU have rewound four decades to discuss an expensive ‘solution’ involving stickers & labelling," he added.
Using different product labelling could ease the need for customs checks at the border but Norman argued that it would lead to increased costs for producers and in turn higher prices for customers.
“A costly labelling solution will mean customers will be hit by reduced ranges, higher prices – at a time of huge inflation and when the economy in Northern Ireland is already disadvantaged – and a worsening of availability.
“This proposal adds cost, labour and complexity at a time when the supply base really does not need it and is struggling to stay on its feet to the specific advantage of EU producers," the M&S chairman concluded, the Telegraph reported
Last week, billionaire businessman Sir James Dyson accused the government of a “short-sighted” and “stupid” economic approach, while the director general of the CBI questioned the lack of a "strategy".