The Food and Drink Supply Chain All-Party Parliamentary Group (APPG) will meet at the end of January with Food Minister Mark Spencer to discuss the ongoing pressures faced by businesses due to energy price hikes.
Interim chair of the Group, Sharon Hodgson MP said that energy prices are having a “major impact” on businesses within the sector, which is driving food price inflation to “worrying levels” and has intensified the cost of doing business as a result.
The APPG’s next meeting is scheduled for 18th January and according to Hodgson, the Group have requested Spencer’s attendance so that the Minister can outline the government’s plan for support measures after the Energy Bill Relief Scheme ends in March.
At the APPG’s last meeting in October, the panel were joined by guests from across the UK food manufacturing industry, including David Thomson of Food and Drink Federation Scotland; Rod Addy of the Provision Trade Federation; and Tony Goodger of the Association of Independent Meat Suppliers. A recording of the meeting can be found here.
Speaking at the meeting, head of government relations at Associated British Foods, Ian Mace, said that rising energy prices are not only having a direct impact on the cost of running businesses, but the costs of creating ingredients, running a production line and the costs of packaging have all substantially increased as well.
He further noted that this is compounded by rising costs in other aspects of business, such as labour costs. Mace welcomed the Government support scheme in that it provided greater certainty for the following six months, however the volatility once the scheme runs out would make purchasing and investment decisions very difficult.
