Organisations from across the food supply chain have welcomed elements of the Spring Statement but expressed disappointment over others.

On Wednesday 23rd March, Chancellor of the Exchequer Rishi Sunak delivered the Spring Statement that included a reduction in fuel duty on petrol and diesel amid rising costs for the UK supply chain.

Speaking in the House of Commons, Sunak announced several measures as part of the statement, which also included a tax cut for nearly 30 million UK workers via a rise in National Insurance thresholds. 

Protect the resilience of the supply chain

Responding to the statement,the Food and Drink Federation’s (FDF) chief executive Karen Betts said: “Today’s ONS figures show prices for food and non-alcoholic drinks rose at the fastest rate since September 2011. This reflects the significant rises in ingredient, raw material and energy costs that food producers have been facing for many months now. All indications are that food price inflation is some way from peaking, and we expect prices to continue to rise for some months to come.

“Food and drink manufacturers, therefore, welcome the measures the Chancellor has announced to ease the cost-of-living crisis for UK households. In addition, we need government to consider other measures to cut the cost of doing business, to help stall rising prices, and stimulate growth such as removing complexity and cost from upcoming regulation.”

She added: “By establishing a National Food Security Council, government can help protect the resilience of the UK’s food producers and our food supply by reacting in real time to disruption as a result of turbulence in global commodity markets and international supply chains.”

More skilled labour needed

Tony Goodger, a spokesperson for the Association for Independent Meat Suppliers (AIMS), said that whilst the Spring Statement contained several measures which will help businesses, and hopefully ease some of the price pressures on consumers, the trade body’s focus was primarily on its plans for tackling supply chain disruption.

Goodger said that AIMS was disappointed by recent interaction with government regarding the ongoing labour shortages within the British meat sector.

He said: “Having spoken with the Treasury, the Home Office and Defra for some considerable time now about the needs of members in terms of labour and in particular migrant labour, we have been disappointed with both progress and the interpretation of the Skilled Worker Visa’s requirements by some in government.

“We trust that now a commitment has been made within the Spring Statement that progress can be made to ensure that our members’ businesses have access to the staff they need to ensure that they can work productively and more efficiently.

“Our view is that labour, and in particular, skilled labour, is the key not just to the prosperity of our members but also to help drive wider growth across the UK economy revenue from taxes and consumer spending by employees.”

Better energy efficiency

Also responding to the statement, the Chartered Institute of Environmental Health (CIEH) has called on the UK government to prioritise energy efficiency in efforts to tackle the cost of living crisis.

While CIEH welcomed plans such as 0% VAT on energy saving materials, like solar panels or heat pumps, and a 5p cut to fuel duty, the organisation has called for more to be done on energy efficiency and to build on the UK’s renewable energy sources.

Dr Phil James, chief executive of the CIEH, said: “The continuing energy price crisis points to a need to accelerate our move away from gas. CIEH is calling for the expansion of renewable energy sources and a significant shift of energy supply away from fossil fuels.

“In the short term, the best solution to the current crisis is to use less gas – through better energy efficiency and insulation. The VAT cut on energy saving materials is welcome, but the government should fulfil the Conservative Party manifesto commitments to funding energy efficiency in existing schemes, including more funding for the Home Upgrade Grant, which should be available to all households and be a long term source of funding.”

He added: “Rising costs affecting the basic cost of living are likely to exacerbate health inequalities around the country and mean a step back for the government’s Levelling Up agenda. The Chancellor’s additional funding for vulnerable households is a start but more must be done to ensure that people on low incomes are protected from the worst impacts of the cost of living crisis.”