Food mile tax angers retailers

Retailers could face additional taxes on fruit and vegetable imports in an attempt to reduce food miles.

In response to the Stern Review - a report on the economics of climate change - former transport secretary Stephen Byers has called for additional taxes on all exotic fruit and flowers that are flown into the UK.

Food retailers use large amounts of energy while distributing food to stores and maintaining correct temperatures, and are heavily affected by rising fuel costs. For example, Tesco experienced an energy cost increase of£25 million in the first half of this year.

To reduce energy costs and in an attempt to go green, food retailers have announced a number of energy efficiency measures. Over the past year, Tesco has invested£20 million in energy saving schemes and designed stores that use 20 per cent less energy.