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Food manufacturers supplying the hospitality and healthcare markets have called for urgent Government support to rescue them from ‘a financial cliff edge’.
A group of 18 trade associations, led by the British Frozen Food Federation (BFFF), has written to chancellor of the exchequer Rishi Sunak and other Government ministers. They have asked for the following support measures to be put in place for food manufacturers with immediate effect:
Extension of the 12-month Local Authority Business Rates exemption to businesses supplying into the hospitality and foodservice market, using the existing legislative exemption for hardship.
Ongoing capital and tax break allowances to maintain the workforce, prorated depending on how many staff a company can keep employed.
Trade bodies across the supply chain have urged the government to create a compensation scheme for losses incurred due to the French border closure.
Heads of food organisations – including the Food and Drink Federation, the Fresh Produce Consortium, the UK Food and Drink Exporters Association and the Chilled Food Association – have written an open letter to George Eustice, environment secretary, and Grant Shapps, transport secretary, calling for immediate action for businesses caught up in the blockade.
Calamitous decision
“The decision of the French authorities – to ban accompanied freight on 20 December 2020 – after the announcement by the UK government of the new strain of virus has caused a calamity for many food and drink businesses,” said the letter.