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Food suppliers facing economic ‘cliff edge’ say trade associations

19th Jan 2021 - 06:00
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Food manufacturers supplying the hospitality and healthcare markets are facing a financial ‘cliff edge’ unless they receive urgent support from the Government, says a coalition of 18 trade associations.

The group, led by the British Frozen Food Federation (BFFF), has written a letter to Chancellor Rishi Sunak and other Government ministers highlighting that pubs, restaurants and cafes received extended financial support.

Richard Harrow, chief executive of the BFFF, said: “England’s national lockdown, plus restrictions in the UK’s other nations, have been devastating for our many businesses supplying the hospitality and foodservice markets and they are facing a bleak winter.

“Many of the ‘squeezed middle’ are often successful family-owned SMEs and are now facing collapse. Support for this important sector is vital to ensure they continue to manufacture and supply world-leading products, making the market so dynamic and vibrant. Their continued existence will be critical as the economy starts to recover.”

The 18 trade associations have called for:

  • Extend the 12-month Local Authority Business Rates exemption to businesses supplying into the hospitality and foodservice market, using the existing legislative exemption for hardship.
  • Put in place on-going capital and tax break allowances to maintain the workforce, prorated depending on how many staff a company can keep employed.
  • Provide grants for those companies that have had to dispose of fresh short life stock either through waste or charitable donations. These disposals have come about due to unplanned short notice restrictions related to lockdowns that impact suppliers of perishable goods disproportionately.

To read the full letter, click on the document below.

Written by
Edward Waddell