Frozen supermarket food prices set to soar - full list of products that will be more expensive

The cost of frozen supermarket food items such as vegetables, pizzas and chips is predicted to surge due to the Budget, according to warnings. The Cold Chain Federation, a trade body, has stated that the Chancellor's hike in employers' National Insurance Contributions will result in an additional £620 million expense for companies delivering frozen, chilled supermarket and pharmaceutical products.

Phil Pluck, the CEO of the federation, commented: "This is just the beginning. The £620 million increase will inevitably lead to higher prices for consumers. Coupled with the impending business rates review, the UK public can expect to pay more for essential food and medicine."

Mr Pluck further added: "Since the Budget announcement, cold chain operators have reported that increased wage bills are hindering their ability to create new jobs and offer competitive salaries. The Government's economic strategy risks stifling growth, suppressing wages and ultimately placing a greater financial burden on consumers."

Last month, Chancellor Rachel Reeves announced that National Insurance Contributions for employers would rise from 13.8% to 15%. However, the threshold at which businesses start paying National Insurance will be reduced from £9,100 to £5,000.

This was part of Ms Reeves' initiative to generate an extra £40 billion in tax to fund public spending, which also included a rise in the minimum wage, reports the Mirror.

The Cold Chain Federation has stated that its industry contributed £14 billion in gross value to the UK economy, supported 184,000 jobs and generated £3.7 billion in tax revenue in 2023. The British Frozen Food Federation also reports that 40% of UK consumers are purchasing more frozen food as a cost-saving measure amidst the ongoing cost-of-living crisis.

HM Treasury has been contacted by The Mirror for comment.