Small food businesses are to be badly affected by new regulations, according to a new report.
The report, by the Forum of Private Business (FPB), suggests that new food tractability regulations are likely to cost the sector an estimated £850 million a year.
The new regulation places a legal requirement on food producers and sellers to keep a record of the persons or businesses they bought their food from and the businesses they sold their goods to.
Businesses such as butchers and cheese makers will be most affected by the regulation.
Criticism from the FPB surrounds the issue of wasted time, with extra record keeping, on top of the already lambasted levels of red tape, potentially costing employers thousands.
Bob Salmon, FPBs food adviser, said: “The problem is that the new regulations are extremely onerous for micro-businesses as they do not have the technology or staff at their disposal that larger firms do.
"Having robust tractability is desirable as it can help small food firms sell their products to retailers, but it is critical that complying with regulation is practical. Small businesses must be allowed to get on and do their job without having to contend with yet more red tape.”