Government pressured to reveal plans on energy support

05-Jan-2023 - Last updated on 05-Jan-2023 at 17:21 GMT

Members of parliament and food firms pressure Government to reveal its plans for the energy crisis. iStock TebNad

Members of the food and drink industry are pressuring the Government to reveal its plans to keep the nation fed and support the sector through the energy crisis.

The Food and Drink Supply Chain All-Party Parliamentary Group (APPG) have repeated calls for the food and drink industry to be at the top of the list for support and protection and that tackling the short- and medium-term impact of the energy crisis on producers, distributors and retailers should be the Prime Minister’s priority.

Of major concern were the details of the energy bills relief scheme and whether or not it will continue after March.

Major impact

Sharon Hodgson MP, interim chair of the APPG said: “Spiralling energy prices are having a major impact on food and drink businesses, intensifying the cost of doing business, and driving food price inflation to worrying levels.

“This is why we have invited the food minister Mark Spencer to give evidence to the APPG so he can outline the government’s plan to support this vital sector after the initial scheme ends in March, and to set out how we can build a stronger, more resilient supply chain in the future.”

In its next meeting (18 January 2023), the APPG will explore the impact the current energy crisis is having on the food and drink supply chain, how this will potentially impact consumers and businesses across the UK and what steps Government plans to take to support this sector after the current six-month support package expires.

Industry evidence

In it’s last meeting, members of the food and drink industry gave evidence about the impact of spiralling costs and the deteriorating economic situation, as well as the likelihood of redundancies, business closures and sharp decline in investment if energy support is rescinded in March.

Emma McClarkin, chief executive of the British Beer and Pub Association told the group: “Energy used to be 5% of overheads of hospitality businesses, by July it was 10% and by the end of the year it is forecast to be 15%. We will need to see the extension of the energy support beyond six months”

The session is open to the public, with interested parties invited to contact the secretariat if you are interested in attending the meeting.