Chancellor Philip Hammond’s budget should protect the “bedrock” of the UK food industry, says the National Farmers Union (NFU), while business leaders urged him to help the nation “grow its way out of austerity”.
Staff at Tulip’s Coalville site are considering strike action, after senior management refused a pay rise, claimed the Bakers, Food and Allied Workers Union’s (BFAWU’s) regional officer.
Three-month average pay settlements in the manufacturing sector have risen above 2% for the first time since November 2015, according to a survey by EEF, the manufacturers’ organisation, following a surge in inflation.
Pay increases in the manufacturing sector – including food and drink firms – are slightly ahead of consumer price inflation, revealed EEF, the manufacturer’s organisation.
Rising food prices can be expected in 2017 – reversing the deflationary trend of recent years – as news emerged from the Office for National Statistics (ONS) that inflation overall in the UK in November had climbed to its highest level in two years.
Food deflation remains a persistent feature of the UK economy, despite the latest figures from the Office for National Statistics (ONS) showing headline inflation up 0.5% in March.
Food and drink manufacturers are still coming to terms with the budget proposal to introduce a sugar tax on soft drinks, while welcoming business rates reform but expressing disappointment on the failure to cut alcohol duties.
Manufacturers faced mixed news last month with the release of government statistics showing food deflation in July at “one of the lowest values ever recorded”.
Low fruit and meat prices between November and December 2013 have helped dampen consumer price inflation, according to the Office for National Statistics (ONS).
The British Poultry Council (BPC) has appointed Andrew Large as its new chief executive, following the retirement of Peter Bradnock after a 22-year tenure.
Retailers are unlikely to see sales volumes on food recover in the next year, as prices will be pushed up due to a poor worldwide harvest, economists suggest.
News that food price inflation had slowed in October gave hard-pressed shoppers some respite. Whether this will lead to greater stability in the roller coaster rise of volatile input costs for manufacturers is another matter.
