No-deal Brexit: No more warehouses to stockpile food because Amazon may have booked them up, MPs told

Committee told all frozen and chilled space has been taken, but no one knows if there is anything in it – amid rumours that US giant is poised to pounce

Warehouses to stockpile food for a no-deal Brexit may be empty because they have been snapped up by Amazon to pounce on the UK market, an inquiry by MPs has been told.

The Food and Drink Federation warned that all available frozen and chilled space had been taken – but no one knew who had taken it and whether there was anything in it.

“What we don’t know is whether there is actual product in those places,” said Ian Wright, the federation’s chief executive.

And he added: “There is some gossip, and I can’t stand this up, that quite a lot of this has been booked by Amazon for their entry into the food market at some point over the next few months.

“Every retailer is inevitably terrified by that prospect and will talk it up.”

Mr Wright suggested it was a “useful question” for MPs put to the boss of Amazon, but warned: “He won’t tell you.”

Theresa May revealed in July that plans were underway to stockpile food – in case imports from the EU are cut off if the UK crashes out without an agreement – but denied the public should be “worried”.

However, Mr Wright said space had now almost run out with food and drink manufacturers in the dark about who had booked it up.

“Frozen and chilled are, for all practical purposes, booked out at the moment,” he told the Commons business committee.

“There is some ambient available, but it’s in the wrong part of the country. It’s not where you need it on your particular supply journey.”

And he added: “For long-term planning for big or medium-sized businesses, it won’t work.”

Mr Wright also warned of inevitable price hikes in the shops, if stockpiling took place, saying: “There’s nowhere to go. If costs go up, you either have to absorb them or you have to pass them on in price increases.”

Amazon has been contacted for comment on the claim it has bought up available warehousing space in the UK.

In common with other retailers, food and drink manufacturers have backed the prime minister’s Brexit deal, in relief that it would avoid the damage from crashing out of the EU.

However, Mr Wright said the federation remained opposed to ending free movement of labour – a criticism he had put to Ms May in person at a meeting this week.

And, on the “political declaration”, which was meant to outline a future trade deal, he added: “It’s a list of new year resolutions – and we don’t know whether they will still be there at the end of January.”

Both Mr Wright and Ian Rayson, of Nestlé, cast doubt on a solution ever being found to deliver frictionless trade, while avoiding the return of a hard border in Ireland.

“We’re not aware of technologies that can magically solve the problem,” Mr Rayson told the committee.

And Mr Wright said: “When politicians tell you there’ll be a technological solution [for Ireland] they almost certainly don’t know what they’re talking about.”