The British Retail Consortium (BRC), a trade association for businesses like supermarkets, has blamed energy costs and tax rises for the fact food prices have increased by 37% over the past five years.

But this obscures the truth — that of supermarkets rapidly growing profits, in line with the surge in food prices.

Greedflation

Lidl’s operating profit rose by 297%, from £79 million in 2021 to £314 million in 2025. Yet we’re supposed to believe that higher costs on their end are the sole reason for eye-watering food inflation.

Similarly, Aldi’s operating profit rose from £289 million in 2020 to £435 million in 2025 — an increase of 50% over five years (including the Covid-19 years).

This isn’t down to people switching to cheaper options. Tesco’s operating profit leapt from £1.8bn in 2020/21 to £3.1bn in 2024/25, an increase of 72%. And Sainsbury’s operating profit has risen slightly over the same period. It’s greedflation, through and through.

Energy costs and tax rises?

At the same time, there have been increased energy costs.

These could be lowered through a publicly-owned Green New Deal, and 40% of a farm’s total expenditure costs can be attributed to energy.

Since privatisation of electricity began in the 1990s, average prices have more than doubled, according to Ofgem and Hansard figures. Meanwhile, analysis shows that average gas prices increased by 143% between 1992 and 2022.

In 2023, the average price per unit of electricity in the UK was £127 per MWh. A renewable energy system could deliver the same at costs as low as £55 per MWh. Over time, a Green New Deal would pay for itself. And then it would deliver cheaper energy for every business and individual moving forward.

Businesses have also been subjected to higher taxes through an increase to employer National Insurance Contributions (NICs). But large, profitable businesses like supermarkets should absolutely shoulder increased taxes. In fact, the rise should be put on them and not small businesses.

Non-profit supermarkets

In fact, under the current system, supermarkets may not lower their prices at all even with a much cheaper energy system. We can see that them using energy crises and tax rises as cover for lining their pockets.

Instead, supermarkets should be not-for-profit because they are only middle-manning between the agriculture sector and humans who need food.

That’s a major way an administration could tackle the cost of living crisis.

Featured image via the Canary

By James Wright

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