Latest news with #TheFoodandDrinkFederation
Yahoo
14-05-2025
- Business
- Yahoo
Food firms want UK to improve EU relations, help on skills
The UK's leading food and drinks industry body is calling on the government to boost trade relations with the EU and support investment in training among fixes to address a reluctance to invest. UK food and beverage manufacturers are either cutting back or cancelling investments because of the prevailing economic challenges, according to The Food and Drink Federation (FDF). Allied with increasing production costs, a shortage of skilled labour in a rising wage environment, and ebbing confidence among industry players, the FDF has urged the UK government to 'prioritise a more strategic approach to EU trade relations' to revive exports still floundering in the wake of Brexit. 'As industry's ability to invest suffers, it's critical that food and drink receives its fair share of government funding and support to unlock innovation in the UK's largest manufacturing sector,' the FDF said as it presented the latest findings from its State of Industry report series. The FDF suggested vacancy rates within the food and drinks sector are 'more than double' those in the UK's wider manufacturing industry, adding that government investment in skills training is 'vital to plug this gap'. 'It's concerning that businesses are having to scale back investments that would help drive long-term growth and productivity as they ride out a wave of cost rises,' Balwinder Dhoot, the FDF's director of industry growth and sustainability, said as he stressed how the food and drinks sector is 'fundamental to the nation's food security'. He added: 'We urge government to give businesses the support they need to make investments that will support the resilience of the food industry.' Based on the FDF's research, 41% of UK food and beverage businesses plan to cancel or curtail investment in the year ahead in areas such as automation due to the recent Labour government's increases in the national minimum wage and employer national insurance contributions. 'Geopolitical uncertainty' is exacerbating investment decisions, it said. Some 33% of food and drinks businesses, including 47% of small- and medium-sized enterprises (SMEs), 'expect conditions to further deteriorate as they grapple with volatile global economic conditions and increased costs as a result of new government policies', the trade body revealed. Meanwhile, confidence among manufacturers 'remained persistently low' at 43% in the first quarter, the research found. While simplifying regulations and removing red tape remain common gripes in the industry, the FDF urged the government to allocate more financial resources to support R&D in the sector, particularly around providing healthier options for consumers, and to make it easier to secure tax credits. Trade agreements struck recently with India and the US, although the latter is currently limited in scope, were welcomed by the FDF as industry costs rise. It suggested production costs for food and drinks manufacturers increased by around 4.5% in the year through March, with 22% of those surveyed identifying a rise of 10% or more. And they expect an additional 4.8% increase in the next 12 months linked to energy, ingredients and labour costs. While the trade agreements will help boost 'competitiveness' for the UK food and drinks industry, the government must 'push for a reduction in the current 10% tariffs imposed by the US, whilst also strengthening our relationship with our strongest trading partner, the EU', the FDF said. "Food firms want UK to improve EU relations, help on skills" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Food, drinks firms want UK to improve EU relations, help on skills
The UK's leading food and drinks industry body is calling on the government to boost trade relations with the EU and support investment in training among fixes to address a reluctance to invest. UK food and beverage manufacturers are either cutting back or cancelling investments because of the prevailing economic challenges, according to The Food and Drink Federation (FDF). Allied with increasing production costs, a shortage of skilled labour in a rising wage environment, and ebbing confidence among industry players, the FDF has urged the UK government to 'prioritise a more strategic approach to EU trade relations' to revive exports still floundering in the wake of Brexit. 'As industry's ability to invest suffers, it's critical that food and drink receives its fair share of government funding and support to unlock innovation in the UK's largest manufacturing sector,' the FDF said as it presented the latest findings from its State of Industry report series. The FDF suggested vacancy rates within the food and drinks sector are 'more than double' those in the UK's wider manufacturing industry, adding that government investment in skills training is 'vital to plug this gap'. 'It's concerning that businesses are having to scale back investments that would help drive long-term growth and productivity as they ride out a wave of cost rises,' Balwinder Dhoot, the FDF's director of industry growth and sustainability, said as he stressed how the food and drinks sector is 'fundamental to the nation's food security'. He added: 'We urge government to give businesses the support they need to make investments that will support the resilience of the food industry.' Based on the FDF's research, 41% of UK food and beverage businesses plan to cancel or curtail investment in the year ahead in areas such as automation due to the recent Labour government's increases in the national minimum wage and employer national insurance contributions. 'Geopolitical uncertainty' is exacerbating investment decisions, it said. Some 33% of food and drinks businesses, including 47% of small- and medium-sized enterprises (SMEs), 'expect conditions to further deteriorate as they grapple with volatile global economic conditions and increased costs as a result of new government policies', the trade body revealed. Meanwhile, confidence among manufacturers 'remained persistently low' at 43% in the first quarter, the research found. While simplifying regulations and removing red tape remain common gripes in the industry, the FDF urged the government to allocate more financial resources to support R&D in the sector, particularly around providing healthier options for consumers, and to make it easier to secure tax credits. Trade agreements struck recently with India and the US, although the latter is currently limited in scope, were welcomed by the FDF as industry costs rise. It suggested production costs for food and drinks manufacturers increased by around 4.5% in the year through March, with 22% of those surveyed identifying a rise of 10% or more. And they expect an additional 4.8% increase in the next 12 months linked to energy, ingredients and labour costs. While the trade agreements will help boost 'competitiveness' for the UK food and drinks industry, the government must 'push for a reduction in the current 10% tariffs imposed by the US, whilst also strengthening our relationship with our strongest trading partner, the EU', the FDF said. "Food, drinks firms want UK to improve EU relations, help on skills" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
UK sets outs plans to change sugar tax
The UK government has called for consultation on proposals to widen the sugar tax on soft drinks and include milk-based drinks. The Soft Drinks Industry Levy (SDIL), introduced in 2018 as an obesity measure, could expand to cover drinks with a lower sugar content and include milk-based and milk-substitute drinks, which had thus far been exempt. The consultation lays out proposals "to build on the SDIL's success in incentivising soft drinks producers to reduce sugar content", the HM Revenue & Customs and HM Treasury said in a joint statement. The proposals are: to reduce the minimum sugar content for SDIL to apply at 18p (24c) per litre from 5-7.9g per 100ml to 4g-7.9g per 100ml; to remove the exemption for milk-based drinks while introducing a 'lactose allowance' which does not penalise natural sugars from milk; and to remove the exemption for milk substitute drinks with 'added sugars' beyond those sugars derived from the principal ingredient such as oats or rice. At the moment, drinks with a sugar content of 8g or more sugar per 100ml are charged at the higher rate of 24p per litre. In a statement, a spokesperson for trade association The Food and Drink Federation said: "Food and drink manufacturers are facing a series of inflationary pressures and government must continue to create the right conditions for businesses to innovate and also be clear about their long-term goals to promote business confidence. A predictable regulatory environment is vital to ensuring our sector can continue to invest in developing healthier options." Manufacturers had already significantly reduced sugar content in drinks over the past five years, including in milk-based drinks that are not subject to SDIL, the spokesperson added. The British Soft Drinks Association said the changes were unnecessary. 'This decision is a muddled and damaging shifting of the goalposts which risks undermining years of reformulation investment with questionable positive health outcomes. More than seven out of every ten soft drinks sold in the UK are low or no sugar and the total sugar removed from soft drinks between 2015 and 2024 is just under three quarters of a billion kilograms," a spokesperson said. The BSDA spokesperson also pointed to "major and unprecedented financial headwinds for our members, from record-high inflation and NIC increases, to spiralling ingredient costs and incoming trade tariffs". The spokesperson added: "Such cost increases have already impacted our members' ability to grow their businesses and boost employment, and the lowering of the SDIL threshold risks making this even more challenging." But Kawther Hashem, at campaign group Action on Sugar, said the proposals would improve public health. "We are delighted to see the government taking steps to strengthen the Soft Drinks Industry Levy (SDIL) which has already driven significant reductions in sugar across the drinks industry, and these new proposals are a bold and necessary next step," she said. "We strongly support the move to reduce the minimum sugar threshold and to end the exemptions for sugary milk-based and milk-substitute drinks. This ensures a more consistent and fair approach across all types of drinks, and it makes absolute sense for public health," Hashem added. The consultation closes on 21 July. Responses can be made online, by email or in writing. "UK sets outs plans to change sugar tax" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
