Chief Executive’s Weekly News – 23rd March 2020

Posted on March 23, 2020 by admin - Chief Executive's Blog

Dear All,

It is not my intention to repeat every announcement regarding coronavirus, but I will reference issues/developments as they impact bakery.

My main day to day communications as necessary are with the FoB Board who I am asking to cascade emails as necessary within your business.

Any comments/observations are of course welcome as we do our best to ensure that we can continue to feed the nation with its favourite staple product and that the government understands that.

 

Take care and have as good a week as you can.

 

Gordon Polson

Chief Executive

Federation of Bakers Ltd

Coronavirus

 

 

  1. We have seen positive responses from the government on drivers hours and key workers.

 

  1. FoB is drafting a letter to the Defra Secretary of State enforcing our needs as a key food producer.

 

  1. We are also expecting a proposal from Defra on the suspension of the requirement to add thiamine to white flour as required under the Bread and Flour Regulations but the latest information from        Defra suggests there is no immediate shortage.

 

4..Monitoring absenteeism is going to be a key measure in responding to government and how we can continue to respond to demand.

 

4.Key Workers: In Scotland, unlike the rest of the UK, the Scottish Government has refused to rule on key workers and is leaving it to local authorities. I have given our name and support to FDF who are lobbying for a change to the Scottish Governments approach.

 

  1. UK Hospitality and FDF are to raise concerns with the emergency legislation and contract catering provisions within food production sites.

 

  1. Members with labour shortages to contact david@alliancehr.co.uk to utilise the ALP online portal SWAP (Spare Worker Availability Portal).

 

  1. I am aware there are issues regarding sourcing some PPE and I am including this in the letter to SoS. It was raised at the FoB H&S committee yesterday. HSE got the message.. I will be writing to HSE to reinforce  our position.

 

 

Coronavirus outbreak to weaken the UK economy: According to the data published by British Chambers of Commerce (BCC), the economy is forecast to increase by 0.8% in 2020, compared to growth of 1.4% in 2019. Further, it is forecast to increase by 1.4% and 1.6% in 2021 and 2022 respectively.

In q1’20, gross domestic product (GDP) is projected to increase by 0.2% followed by a decline of 0.1% in q2’20. In addition to the impact of coronavirus, the BCC mentioned a lack of clarity on the future trading relationship with the European union (EU) and other economies as well as a struggling global economy as factors to limit the short-term growth prospects of the UK.

Business investment is expected to decrease by 0.7% in 2020 and household spending growth by 0.9% during the same period.

Meanwhile, growth in government spending is forecast to be 3.6% in 2020 and 3.0% in 2021. UK official interest rates are expected to increase from 0.3% to 0.8% by the end of 2020 interest rates are then expected to rise to 1.0% in 2021.  

 

Annual Inflation Decreased to 1.2% in feb’20

According to eurostat, euro area annual inflation rate decreased by 1.2% in feb’20 compared to 1.4% in jan’20. European union annual inflation also decreased to 1.6% in feb’20 compared to 1.7% in jan’20.

In feb’20, the lowest annual rates were registered in Italy at 0.2%, Greece at 0.4% and Portugal at 0.5%. The highest annual rates were recorded in Hungary at 4.4%, Poland at 4.1%$ and Czech republic at 3.7%, when compared with jan’20.

In feb’20, the largest contribution to the annual euro area inflation rate came from services at +0.72pp, followed by food, alcohol & tobacco at +0.41 pp, non-energy industrial goods +0.13 pp and energy -0.03 pp.