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The National (Scotland)
The National (Scotland)
National
Craig Meighan

BBC accused of trying to 'hide' impact of Brexit on inflation

The BBC has been criticised for an article explaining the reasons behind inflation

THE BBC has come under fire for its coverage of inflation with critics accusing the broadcaster of failing to properly identify Brexit's impact on rising prices.

The corporation has been told that if it wants to “recover its reputation” it should “be seen to be telling the truth no matter the consequences”.

The comments follow a BBC article titled “What is the UK's inflation rate and why is the cost of living going up?”

The article explains why inflation is skyrocketing in the UK and why the cost of living is so high.

The article lists surging energy bills linked to the war in Ukraine, rising petrol prices and increasing food costs as some of the major reasons for high inflation.

Brexit, however, is not one of the issues listed under the heading “why has inflation risen so much”.

The UK’s departure from the EU is mentioned once in the article as the broadcaster points out that wages are failing to keep up with inflation, which is currently at 9.1%.

The BBC article said: “Some parts of the economy facing staff shortages as a result of Brexit and the pandemic have increased staff pay. On 1 April, the lowest-paid saw the National Living Wage rise by 6.6% to £9.50 an hour.”

SNP president Michael Russell took issue with the BBC’s coverage of the issue, urging the corporation not to “hide” Brexit’s impact on the economy.

He told The National: "If the BBC is to recover any of its reputation - and even Ofcom has indicated recently that it is failing in complaints and in perceptions of impartiality - then it needs to be seen to be telling the truth no matter the consequences.

“Everyone knows that Brexit is a key factor in the economic crisis the UK is facing and Scotland is suffering as a result.

“Trying to hide that fact because the Prime Minister is to blame for this disaster is not the action of an independent or impartial broadcaster but of one whose links with the Tories at every level are far too close."

Some people in the BBC’s comments section also took issue with Brexit not being made a more prominent part of the article.

One reader wrote: “The former boss of Sainsbury’s was on Sky the other day and when asked about rising prices he said it was largely down to Brexit. At least he’s honest.

"Brexit has meant that we have world-beating inflation, shame on those who won’t admit it.”

Another said “Brexit is the main cause” of inflation and went on to criticise the BBC for not mentioning it more.

In 2019, economists at the Centre for Economic Policy Research calculated that there had been a Brexit inflation effect.

Their paper reads: “We estimate the Brexit vote increased consumer prices by 2.9 percent, costing the average household £870 per year.

“The increase in the cost of living is evenly shared across the income distribution, but differs substantially across regions.”

The Centre for Economic Performance at the London School of Economics also said that Brexit caused an increase in food prices in the UK.

The research stated: “Brexit increased average food prices by about 6% over 2020 and 2021.”

A former interest rate-setter at the Bank of England and president of the Peterson Institute for International Economics Adam Posen has attributed 80% of the difference in inflation between the EU to Brexit.

However, Peter Levell, associate director at the Institute for Fiscal Studies, said the impact of Brexit on the current rate of inflation is difficult to assess while price rises were “turbocharged” by Russia’s invasion of Ukraine. He added, however, there is ample evidence that leaving the EU is having a long-term effect on prices.

A BBC spokesperson said: “Like any organisation we work to make continuing improvements, which is why we published a 10-point plan on impartiality and editorial standards last year.

“Everyone knows this is an absolute priority for the BBC, and Ofcom rightly recognises impartiality is a complex area, audiences hold us to a higher standard than other broadcasters and that we have a good record of complying with broadcasting rules.

“In addition, the BBC has the most thorough and transparent complaints process in UK media and we are committed to being accessible and accountable to our audiences. We will work with Ofcom to make further improvements to this system.”

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