Fertiliser carbon tax may be shelved to curb UK food inflation

UK ministers are reported to be discussing suspending a planned carbon charge on fertiliser imports as part of a package of measures aimed at curbing rising food inflation. The Guardian published the initial report on 28 May 2026, saying the talks form part of wider measures under consideration.

Options under review include temporary suspension of certain fertiliser duties and the suspension of import tariffs on a range of food items such as bread, biscuits and bananas. The Department for Business and Trade opened a call for input on potential tariff suspensions on 27 May 2026, signalling that the government is formally consulting stakeholders about tariff reliefs for fertilisers and foodstuffs.

The UK’s carbon border framework—intended to apply to sectors including fertiliser from January 2027—would impose a charge linked to embedded emissions in imports; ministers’ reported talks reflect tension between the climate policy framework and near-term cost pressures facing farmers and consumers. Parliamentary documentation and government briefings set out the CBAM timetable and legislative basis.

The push to reconsider or delay the charge is driven by surging fertiliser costs after disruptions related to the Middle East, which have squeezed supplies passing through key shipping routes and pushed up input prices for arable farmers. News agencies and industry reports note the government has already been evaluating a range of consumer support measures, including tariff adjustments and temporary tax reliefs.

Market observers say a temporary pause on fertiliser-related carbon charges and targeted tariff suspensions could ease input-cost inflation for farmers and lower some upward pressure on food prices in the near term. However, analysts warn that such measures are stopgaps: durable relief depends on stabilising global supply routes, easing energy-driven production costs, and clarifying how the UK’s carbon border mechanism will align with broader net-zero commitments.