News article
8 July 2020
Food and Drink Federation response to the Chancellor's Summer Economic Update
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The Food and Drink Federation has released the following statement in response
to the Chancellor's
Summer Economic Update.
Commenting on the update, FDF's Chief Executive, Ian Wright CBE, said:
"The FDF is extremely appreciative of the unprecedented support the UK
Government
and the
devolved administrations have provided throughout this crisis. Up and down the
country, the 'Hidden
Heroes' of the UK's food and drink industry have kept the nation fed through
the
last few difficult months.
"The UK's food and drink manufacturers who supply into the hospitality and
catering trade have been
hard hit by the crisis, as their customers disappeared overnight. These
'squeezed middle' firms will
enthusiastically welcome the Chancellor's announcement today to cut VAT on food
and hospitality and
slash the cost of eating out. We hope these measures will lead to a significant
boost in demand for the
hundreds of manufacturers who supply into hospitality and the out of home
sectors and help them to
manage increased supply costs.
"However, if demand does not return quickly, these firms will continue to
struggle unless they - and
the sector they supply - receive additional employment support. The Chancellor
must therefore keep the
option of extending full furlough support to hospitality and their food and
drink suppliers in his back
pocket so we do not lose vital jobs and businesses.
"The closure of hospitality has disproportionately affected young people's
employment prospects. We
applaud today's interventions to increase employment opportunities for young
people who would
otherwise be hit hardest by unemployment. The FDF is pleased that government
heeded our call to
introduce cash incentives for employers taking on new apprentices. We would now
welcome the
opportunity to work with government to ensure food and drink manufacturers can
make the most of the
schemes announced, as our industry offers great careers, in every constituency."
More Information
Contact Megan Bevan, Corporate Affairs Division, at: Megan.Bevan@fdf.org.uk, or 07946 340 998.
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