Food to overtake energy bills in driving up UK cost of living crisis
Until now, the cost of living crisis has been most closely associated with energy bills - but soon food costs will overtake energy as the main inflation driver.
Food costs are set to overtake energy bills in driving up UK inflation this summer, a new report has warned.
The report by the Resolution Foundation has found that the cost of living crisis – until now dominated by sky-high energy bills – will soon be driven by rocketing food prices, once again hitting poorer UK households the hardest.
According to the report, whilst energy prices have risen faster in the UK it is still food that makes up the largest share of a typical household’s outgoings.
As a result, as food prices continue to rise whilst energy bills fall back this summer it is predicted that the cost of eating will become the biggest threat to people’s finances.
Food prices have increased by 25 per cent over the past year and a half, greatly impacting the squeeze on living standards in low and middle-income households.
And now, grocery bills are expected to increase again over the summer.
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According to the thinktank behind the report, it was not clear that politicians were currently prepared for another year of food price rises or that “policy debates have caught up with the scale of what is going on”.
Food price inflation reached around 19 per cent in March, the highest in almost half a century. As a result, the report asserts that food prices will be ‘contributing far more than energy to CPI inflation through the remainder of 2023.’
The report said: “By this summer, food costs will have overtaken energy bills in the scale of the shock they are administering to family finances.”
The Resolution added that it can also model the scale of the impact across individual households, suggesting that this summer 16 million households (56 per cent) will face a big shock when it comes to paying for their food.
The Bank of England governer Andrew Bailey told business leaders earlier this month that he was ‘concerned’ that food and other non-energy prices would remain elevated.
Typically, food prices in the UK fall in the summer as locally-grown crops replace those imported from abroad.
However, factory gate prices for milk, meat and other foods have accelerated, in some cases by more than 50% year on year.
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The Resolution Foundation’s report, Food for Thought, says food prices are expected to contribute “more to overall inflation than energy” in the months ahead.
“Between March and September 2023, food prices are expected to contribute around 2 percentage points to inflation each month, while the contribution of energy prices is set to fall from 3 percentage points to less than 1,” the report estimates.
The cost to the nation from higher food prices since the 2019-20 financial year would be £28bn by the end of the summer, compared with an extra £25bn cost from higher energy prices, it added.
Lalitha Try, one of the report’s authors, said: “Everyone realises food prices are rising but it’s less clear that the scale of the increases has been understood in Westminster.”
“What rising food prices have in common with surging energy bills is that they pose a greater challenge to lower-income households, who spend a higher proportion of their income on food – 15%, compared with 10% for the highest-income households in 2019-20.
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“As a result, the effective inflation rate for the poorest 10th of households was almost 50% higher compared with the richest 10th of households in March.”
Featured image – RawPixel
Eats
An award-winning vegan restaurant in Manchester has closed – and will become an Irish pub
Daisy Jackson
One of Manchester’s most celebrated restaurants has closed its doors for good, ahead of a major relaunch as an Irish pub.
The Allotment paved the way for vegan dining not just in our city, but across the UK, scooping up awards as it went.
But now the acclaimed restaurant, which stands directly opposite the magnificent Manchester Cathedral, has closed down.
In a statement shared online, The Allotment founder and CEO Anthony Sheridan announced that the restaurant will cease to exist in its current guise, as they prepare to invest in the future of the beautiful building.
Anthony has announced that in the coming months, the space will be transformed into The Sheridan Fiddle, a ‘premium Irish hospitality venue’.
Soon, visitors can expect to see ‘traditional homemade Irish food, perfectly poured Guinness, carefully selected wines, live Irish music and, most importantly, the warm welcome that has always been at the heart of this venue’.
Looking back on almost a decade of The Allotment, the statement shared to followers has also addressed its origins, writing: “Almost ten years ago, I never set out to open one of the UK’s best vegan restaurants.
“I simply wanted to help my little boy.”
Anthony set up the business when his son, Anthony Jr, was diagnosed with Chrohn’s, understanding that a plant-based diet would help him.
The Allotment vegan restaurant in Manchester has closedSigns in the door of Allotment Manchester
The statement continued: “What happened next was something I could never have imagined.
“Together, we built something truly special.
“Over the last decade, The Allotment was named Best Vegetarian Restaurant in the North West, Best Vegan Restaurant in the UK for two consecutive years, and was recognised as the 47th Best Vegan Restaurant in the World.
“But the awards were never the greatest achievement.
“The greatest achievement has been the people, our incredible team, our loyal customers, the friendships we’ve made, and the memories we’ve shared. And seeing thousands of people walk through our doors over the years.”
Anthony Jr is now living in Dubai and running his own gym, which has left Anthony to make the decision to ‘evolve’ the business.
“After a huge amount of thought, we’ve made the decision to begin a new chapter for this beautiful building,” he wrote.
“Rather than closing its doors, we’re investing in its future.”
His statement continues: “Although the concept is changing, one thing never will… Our commitment to making people feel welcome.
“This building has spent the last ten years bringing people together over great food.
“Now, we’re excited for it to spend the next ten years bringing people together in a different way.
“To every single person who has visited us, supported us, recommended us, celebrated with us or simply believed in what we were trying to create… Thank you.
“You haven’t just supported a restaurant. You’ve been part of our family’s story.
“I hope you’ll join us for the next chapter. Welcome to The Sheridan Fiddle.”
The fantastic pub near Manchester Airport that’s a perfect plane-spotting site
Daisy Jackson
Forget rooftop bars and waterfront terraces – this pub comes with front-row seats to one of the busiest runways in the UK.
Just 50 feet from the end of Manchester Airport’s runway, The Airport Pub is where lunch comes with a side of jumbo jets.
If you’re an aviation enthusiast, or plane-spotting has never appealed until you factor in the idea of doing it with a pint in hand, this is the spot to check out. Bonus points if you whip out FlightRadar.
With an outdoor area for the kids too, it’s an easy win for a family day out.
Planes roar overhead every few minutes, thanks to the pub’s obvious proximity to the busy runways of Manchester Airport.
Step inside and the aviation theme continues, with propeller-style chandeliers, jet engine booth seating and other plane-inspired touches that make the pub feel every bit as unique as its location.
But if you ask us, the best seats in the house are outside, where you can tuck into a hearty pub lunch (hello, cheese and onion pie) while watching the constant parade of arrivals.
Cheese and onion pieInside the Airport Pub in ManchesterA pint in the Airport Pub beer gardenPropellor chandeliers inside the Airport PubPlanes land just 50ft from the beer gardenYou can sit inside a booth built from an old engineThe Hangar bar outsideFried chicken and waffles
For an even better view, head over to The Hangar, the pub’s outdoor bar, where you can grab a pint or an ice cream before claiming one of the picnic benches just metres from the runway.
It’s surprisingly easy to lose track of time as everything from short-haul jets to giant long-haul aircraft passes right in front of you.
The Airport Pub isn’t just about the view either. Its family-friendly atmosphere, spacious beer garden and classic diner-style menu make it a great stop whether you’re waiting for a flight, entertaining the kids or simply fancying one of the most memorable pub experiences in the country.
Georgina Pellant -
23rd May 2023 
