CBI Budget Update: Click here to read through the key takeaways for business from the 2021 Spring Budget, how the CBI shaped these announcements, and how it will impact the UK economy.
Barclays Economic Update: UK Manufacturing PMI Increased to 55.1 in Feb’21
According to data published by IHS Markit/CIPS, the seasonally adjusted UK manufacturing purchasing managers’ index (PMI) increased to 55.1 in feb’21 from 54.1 in jan’21.
The data indicated an increase in new orders due to an improvement in domestic demand and an increase in new export business. Demand improved in various markets including the US, Asia, Scandinavia and mainland Europe. However, the upturn of the UK manufacturing sector was constrained by increased cost pressure and supply-chain disruption caused by Brexit complications and the ongoing impact of covid-19.
In feb’21, manufacturing output increased for the ninth successive month. However, output rose at the weakest pace during the current nine-month increase sequence.
Investment goods reported the strongest performance in terms of output growth, new orders, new export business and employment. Intermediate goods also reported growth in production and new business. However, consumer goods producers reported a continued downturn.
Coronavirus: letter to food, drink and environmental service industries on workplace testing
The Secretary of State for Environment, Food and Rural Affairs, George Eustice MP, has written an open letter to industry encouraging employers to test their staff for coronavirus by registering for free testing kits provided by the government. These tests are for staff who cannot currently work from home. Only businesses registered in England can apply for free testing.
A selection of communications resources on workplace testing are available for employers from PHE’s Coronavirus Resource Centre: https://coronavirusresources.phe.gov.uk/Workplace-Testing/resources/employers-assets/
Update on Staff Who are Long Term Shielding
I asked Defra for further information on the date of the possible return to work of employees who are long term shielding. Many of these employees wish to return to work and increasingly may be vaccinated.
The response I got was all shielding guidance is advice it is not mandatory.
The present guidance on shielding runs to 31st March.
So it would appear that the guidance has to be updated soon but there is no hint how the roadmap/vaccines/mass testing could impact that updated guidance.
It may that you could ask the employee to seek guidance/have a discussion with their GP.
Home Testing: It is fair to say the government has concern that home testing will not be ‘habit forming’ which it is suggested it has to be to be successful. The preference is for testing routes that are supervised. Having said that there are home testing trials taking place. However the advice so far is that if home testing is agreed it will be for larger businesses. Smaller sites with 20 or less staff are encouraged to use local authority testing.
Vaccine Rollout: The government has no plans to give advice on paid time off etc for staff receiving vaccinations. Your company policy should apply.
TAC publishes final report advising UK Government on trade policy
The Trade and Agriculture Commission (TAC) established by the UK Government in July 2020 to advise it on trade policies for a fixed term has published its advice in a final report (summary). Its remit was to advice on trade policy while taking into account the need for the agricultural sector to remain competitive and that UK animal welfare and environmental standards in food production are not undermined. In his foreword to the report, the TAC Chair, Tim Smith, said the TAC’s task had been daunting and its approach had been to check that what it was proposing was compliant with international rules and that it was practical. It then made assessments about how potential trade partners would view the UK’s approach. The TAC’s view was that we “need a long-term approach to feeding the nation, focusing on 3 key areas – affordable food, protecting the environment and helping those who want to lead healthier lives in a system which is fair for all involved. We also need a UK trade policy which creates a fair and safe farming system for all.” The TAC aimed to set the principles, strategies and objectives against which UK trade agreements can be measured. Its report makes 22 wide-ranging recommendations.
Government aims for food policy in England
Responding to a question from Caroline Lucas, Victoria Prentis, provided possibly the clearest, succinct summary to date of the UK Government’s aims for food policy in England. She said its “priority is to support British farming and encourage sustainable food production to ensure we have a secure, environmentally sustainable and healthy supply of food with improved standards of animal welfare.” She noted that the Government’s obesity strategy is designed to reshape the food environment by providing people with a healthier choice and encouraging them to take it. She said the Government also recognises the contribution to greenhouse gas emissions made by agricultural sectors. She added “evidence shows that plant-based food products are generally less carbon intensive to produce than livestock products. However, while food choices can have an impact on greenhouse gas emissions, well managed livestock also provide environmental benefits such as supporting biodiversity and protecting the character of the countryside. The independent review of the food system being led by Henry Dimbleby will help the Government to further understand how dietary changes can deliver public policy goals on health and sustainability.”
Government responds to calorie labelling consultations
The Government response to its 2018 consultation on calorie labelling for food and drink served outside of the home has finally been published. The Government response confirms that it will introduce mandatory calorie labelling for large businesses in the sector (businesses with 250+ employees). The policy will apply to any large business in England where food or drink is prepared in a way that means it is ready for immediate consumption by the person who buys it. Calorie labelling will be required on all items the business offers prepared for immediate consumption by the final consumer which are not subject to existing pre-packaged labelling requirements, with certain exemptions such as loose fruit and vegetables. The Government intends to consider businesses operating using a franchise agreement model as the sum of franchisees operating under that brand. The requirement will also extend to online sales from businesses in scope of the policy including sales from third party takeaway platforms. Third party takeaway platforms, irrespective of the size of their business, will be required to display calorie information on food and drink items sold by businesses in scope of the policy. The responsibility for calculating calorie content lies with the business making the food or drink and responsibility for displaying calorie information rests with the business through which the food or drink is sold. There will be certain exemptions, including: education institutions for pupils below the age of 18; in-house workplace canteens where the food and drink on sale is solely for the employees of the workplace; and health and social care settings where the food is provided solely for patients or residents.
£100m funding for support to lose weight & maintain a healthy weight
The Prime Minister, Boris Johnson, has announced that the Government is making £100 million available to support children and adults achieve and maintain a healthier weight. Over £70 million will be invested in weight management services made available through the NHS and Councils, enabling up to 700,000 adults to have access to support that can help them to lose weight, from access to digital apps, weight management groups or individual coaches, to specialist clinical support. The remaining £30 million will fund initiatives to help people maintain a healthy weight, including access to the free NHS 12-week weight loss plan app and continuing the successful “Better Health” marketing campaign to motivate people to make healthier choices. Sir Keith Mills, who has pioneered reward programmes through Airmiles and Nectar points, has also been appointed to advise on a new incentives and reward approach to encourage healthy behaviours. The announcement coincided with the launch of a report from the World Obesity Federation (WOF), which notes that countries with high levels of overweight people, such as the UK and the US, have the highest death rates from Covid-19. Almost two-thirds (63%) of adults in England are overweight or living with obesity and 1 in 3 children leave primary school overweight or obese, with obesity-related illnesses costing the NHS £6 billion a year.
