Chancellor Requested to Support Food Manufacturing in 2009 Budget
November 2009
Melanie Leech, Director General of the Food and Drink Federation (FDF) was speaking ahead of Wednesday’s Budget announcement. She said:
“Food security is at the top of the agenda nationally and globally. This must be the year that the Chancellor recognises the strategic importance of the food and drink manufacturing industry - the UK’s largest manufacturing sector, giving a clear signal of confidence to investors and potential industry entrants alike.
“Our member companies tell us that unwarranted and poorly-implemented regulation is the biggest threat to their competitive position – including that which is disguised as ‘voluntary’ measures. We must halt the tide of unnecessary bureaucracy: what’s happened to the Regulatory Budgets that were launched last year as one way of controlling regulation?
“The Chancellor must also provide the right fiscal measures to support the industry through the economic downturn. We need clarity over issues such as trade credit insurance and a pragmatic approach to employment issues - such as a three year phase-in for the EU Temporary Agency Workers Directive. Plans to increase employers’ National Insurance contributions in 2011 should not go ahead at this stage.
“If, as widely expected, the Chancellor announces a ‘green budget’, the Government must not rely on headline-grabbing initiatives such as tax breaks for electric cars. We need a stimulus package to support our members’ commitment through FDF’s ground-breaking Five-Fold Environmental Ambition, to reduce their environmental impact. We need investment in a national infrastructure on energy from waste – for example through anaerobic digestion - and combined heat and power, and would welcome Government incentives to encourage industry to take these up.
“We also need financial incentives to encourage businesses to invest in key capital improvements earlier than they will otherwise be able to in the current economic climate. And to invest in the skills of the future, including continued efforts to tackle the shortage of food scientists, engineers and technologists and flexibilities in the Train to Gain Programme to support an industry on which the country’s future food security and prosperity depends.”
Michelle Williams from Artemis Solutions Group who specialise in recruiting for Food and Beverage sector states “The Government needs to take a hard look at its priorities and understand that the food and drink industry needs the right fiscal measures and incentives at this critical juncture rather than populist measures. Investment is needed for conversion of waste to energy, creating appropriate educational opportunities and to support the industry.”
