The judge ruled that the FSA’s (Food Standards Agency) main rate and enforcement rate are unlawful and that its costs data slides – the breakdown of its charging rates – did not contain enough detail to assess whether the charges were lawful.
This is a huge victory for all abattoirs, but particularly those small- and medium-sized businesses and the livestock farmers that supply them.
AIMS, supported by the NFU and BMPA argued that:
- The FSA’s main rate and enforcement rate included charges for activities that it was not lawfully allowed to charge for.
- The FSA should not be able to charge for visits by novice official veterinarians and temporarily registered novice official veterinarians when carrying out official inspections, as they do not meet the minimum qualification requirements to be an official veterinarian.
- The FSA failed to meet the required standard of transparency as its cost data slides did not include sufficient information of what costs were included.
Brilliant result
NFU President Tom Bradshaw said: “Today’s ruling is a hugely significant outcome for the livestock sector and is a brilliant result for the meat industry, the NFU and our members. This has been a key issue we’ve consistently raised with government over many months due to the pressure these charges put on abattoirs.”
The NFU has long held the view that these charges on abattoirs risk seriously impacting the wider livestock sector.
It has consistently urged government to carry out a full review of the FSA’s charging regime to ensure that charges are fair and equitable and do not disadvantage UK businesses.
Since the outbreak of the war in the Middle East the NFU has also asked government to postpone these charges and adopt a different approach to help ease cost pressures on livestock farmers. See NFU outlines 8 key asks as Middle East conflict continues to impact on farmers.
Tom Bradshaw continued, “Abattoirs play a vital role in the nation’s food supply chain, yet in recent years the sector has faced significant consolidation, with many small- and medium-sized businesses forced to close.
“This trend has resulted in serious consequences for livestock farmers as local abattoirs which provide important services such as private slaughter and support the independent hospitality and retail sectors, have been lost. It also raises concerns around increased journey times and travel costs.
“The increased charges introduced by the FSA have, in some cases, added tens of thousands of pounds to businesses’ bills overnight. These increases placed further strain on meat premises already under pressure from escalating costs and regulatory burdens.”
FSA ordered to rectify quickly
The NFU President went on to say, “The High Court Judge has been clear that these charges are unlawful and we now look to the FSA to rectify this swiftly.”
NFU Livestock Board Chair David Barton said: “This is a fantastic result for the livestock sector, particularly at a time of rising costs, and it will come as a welcome relief to many. It also underlines the strength of the NFU and its ability to deliver for its members by standing up for them when something is clearly unlawful.
“The FSA should now work at pace to review its charging regime to reduce the pressures on abattoirs ensure these charges are revoked to limit further pressures on abattoirs.
“The fact that even the FSA struggled to explain the legal basis for its charges shows that the time is now right for an independent review into the Agency’s cost structures, workforce management, and use of third-party service providers, to ensure official controls are being delivered efficiently, the fees charged to abattoirs are lawful and to reduce the overall cost burden on the red meat sector.”