Barclays Economic Update: UK Flash Composite Output index Increased to 49.8 in Feb’21

According to data published by IHS Markit⁄CIPS, the UK flash composite output index increased to 49.8 in feb’21 from 41.2 in jan’21. The increase was led by a near-stabilisation in service activity. The UK private sector reported a marginal fall in output, which contrasted with the sharp reduction seen in jan’21.

The seasonally adjusted UK flash manufacturing Purchasing Managers’ Index (PMI) increased to 54.9 in feb’21 from 54.1 in jan’21, owing to growth in new orders.

The report also noted that manufacturing production continued to expand in February, but the rate of growth was only marginal and the weakest since the recovery began in jun’20. Manufacturing companies cited supply chain disruptions caused by Brexit trade frictions, international border delays and strong worldwide demand for raw materials as the factors for holding back production.

The seasonally adjusted flash UK services PMI business activity index increased to 49.7 in feb’21 from 39.5 in jan’21, owing to a near-stabilisation in service activity after the slump in activity at the start of 2021.

 

Manufacturing Output Decreased in the Quarter to Feb’21

According to the Confederation of British Industry (CBI) quarterly industrial trends survey, manufacturing output fell slightly in the quarter to feb’21, but at a much more modest rate than the lockdown in spring 2020.

The survey indicated output growth in 11 out of 17 sectors. although, the growth in these sectors was outweighed by the sharp falls in other sectors including motor vehicles and transport and food, drink and tobacco.

Total order books stood at -24% in feb’21, an improvement on -38% in jan’21, but they remain below their long-run average of

-14%. Export order books worsened to -39% in feb’21, compared to -33% in jan’21, remaining far weaker than the long-run average of -18%.

 

Food and Drink Companies Achieve 55% of CO2 Emission Reduction Targets Early

according to the ambition 2025 progress report, published by the food and drink federation (FDF), food and drink companies achieved 55% of CO2 reduction targets early, five years before the target was due to be reached.

The ambition 2025 project was launched by the FDF in 2016 which set sustainability targets for its member food and drink companies. The report stated that between 2007 and 2019, the FDF members reduced their absolute water consumption by 41.5% and water consumption per tonne of product by 44.5%. As a result, the FDF has updated its targets related to carbon, food waste and packaging.

 

 

Mass Testing: The government has confirmed that the funding of lateral flow tests in England (for businesses with over 50 employees) has been extended from the end of March until the end of June 2021. However you have to register your interest by the end of March. Register  We continue to press for the introduction of home testing.
Smaller businesses are being encouraged to check for local community testing. If you are unable to find a suitable local testing centre, please contact Covid-19.WorkforceTesting@defra.gov.uk to discuss alternative solutions.

Scotland has a similar but as yet not as comprehensive a service.

In the Wales the Health Minister has announced the publication of a workplace testing framework that sets out the criteria and support available to businesses in the public and private sector. The framework focuses on regular testing of employees to find and isolate positive cases quickly, that usually includes the workforce being tested once or twice a week in workplaces that have:
higher exposure to risk;
involve close proximity to others;
over 50 employees that cannot work from home;
and deliver and maintain key services for the public.

Message from Defra on Products of Animal Origin Webinars

 

Dear Trader As you are aware, the transition period with the European Union (EU) came to an end on 31 December 2020, with new import controls being introduced in stages from January until July 2021. From the 1st April 2021, there will be a further set of changes coming into effect on imports of products of animal origin (POAO) for human consumption. These changes affect imports of food and drink containing animal products and further details are being provided as part of the existing imports of Products of Animal Origin webinar series. To support these sessions Defra are also inviting you to join our IPAFFS training webinar sessions. These webinars for IPAFFS registration and use will include: How to register for IPAFFS How to use IPAFFS How to complete a notification for POAO How to complete a notification for HRFNAO The opportunity to have your questions answered by Defra officials The key objective is to ensure you are ready to continue importing from the EU from 1st April 2021.

 

Register Here

 

For more information on importing Products of Animal Origin and IPAFFS, please see our gov.uk here.

Importing to GB: what you need to do now

The government is introducing import controls in stages. This will help businesses affected by coronavirus to get ready.
GB importers need to take the following steps to make sure they’re ready for the Stage 2 sanitary and phytosanitary (SPS) import controls that come into force on 1 April:

• Register for the Import of Products, Animals, Food and Feed System (IPAFFS) now.
• Familiarise yourself with what you need to do to import goods into GB, and how your business will be affected.

235,000 haulier tests completed as lorry drivers urged to get tested away from border

HGV drivers reminded to get tested for COVID-19 early in their journey at one of 37 UK haulier advice sites providing tests

 

Moving Goods Trader Showcase migration

The online Trader Showcase site that you’ve been using to find out about the new rules for moving goods to Northern Ireland and exporting to the EU has been migrated to two new locations, which you can access by using the links below:

• Moving goods from Great Britain to Northern Ireland
• Exporting goods from Great Britain to the European Union

The new Trader Showcase has been developed using Dropbox Paper, which usually requires users to have an account to access content. We recommend opening a free account – which involves a basic registration process – if you don’t already have one.
The new Trader Showcase site works with most modern browsers, but is best viewed using Chrome, Firefox, Safari and the latest two versions of Edge.

 

EU Settlement Scheme

Free movement ended at 23:00 on 31 December 2020. To remain in the UK after 31 December 2020, non-EU and EU citizens will need to have a UK immigration status.
EU citizens, and relevant family members, resident here before the end of 2020, will be eligible for the EU Settlement Scheme. We encourage EU citizens in the UK to apply to the EU Settlement Scheme if they have not already done so, there’s still plenty of time. The deadline for applications to the EU Settlement Scheme, for those resident here before the end of 2020, is 30 June 2021. Please visit the gov.uk page for more information: https://www.gov.uk/settled-status-eu-citizens-families.
A leaflet on EU, EEA and Swiss citizens’ right to work in the UK is also available on gov.uk.
For those arriving from January 2021, they can apply under the new arrangements of the UK’s points-based immigration system.

 

Points-based Immigration system

On 1 January 2021 the government introduced the new points-based immigration system, under which EU and non-EU citizens are treated equally.

Phase 2 of the Home Office’s communication campaign, to ensure businesses are ready for the new points-based immigration system, is now underway and will run until the end of March 2021. The nationwide marketing campaign will continue to use a wide range of channels to reach employers, including radio, social media, digital, and outdoor advertising.
Phase 2 will build on activity to date, continuing to raise awareness and understanding that there is a new immigration system. The key messages to communicate to businesses are that free movement has now ended and there are new requirements with which audiences must comply. The way UK businesses hire from the EU is changing, and to recruit from outside the UK they will need to be a licensed sponsor.
Please visit the campaign page for more information: GOV.UK/HiringFromTheEU.
Translated information for EU nationals is available here – https://www.gov.uk/guidance/the-uks-points-based-immigration-system-information-for-eu-citizens
The Home Office has also launched a podcast for businesses which explains the new immigration system and how employers can prepare. The podcast is available to listen via:
Acast , Apple or Spotify

 

Forthcoming webinars for importers

Full details of webinars for importers and EU exporters are available on gov.uk.

Next week, we are running what is planned to be a final sweep of sector-specific forums to cover Rules of Origin in relation to EU trade, although we will of course be reactive to the level of need. There is also a session on Tuesday 2^nd March specifically focussing on at risk goods and the UK trader scheme, for trade with Northern Ireland.

 

The table below details the sessions that are scheduled. If you would like to join, please either email the relevant contact to be forwarded a meeting invite, or click the link in the table on the day.

 

Sector Specific Guidance	Contact	Dates	Link to event
Fish and Processed Fish	james.walsh@naturalengland.org.uk	Monday 1st Mar, 10.00	Click here to join the meeting
Dairy, eggs, honey	george.hyde@defra.gov.uk or Tanyel.sonuvar@defra.gov.uk	Thursday 4th March 14:00	Click here to join the meeting
Vegetable, fruit and nuts, and prepared veg, fruit and nuts	tom.dufty@defra.gov.uk	Monday 1st March, 16:00	Click here to join the meeting
Coffee, tea, spices, miscellaneous	tom.dufty@defra.gov.uk	Tuesday 2nd March 16:00	Click here to join the meeting
Cereals and Cereal products	Maria.Brown@defra.gov.uk	Wednesday 3rd March, 15:00	Click here to join the meeting
Animal and vegetable fats and oils	tom.dufty@defra.gov.uk	Wednesday 3rd March 10:00	Click here to join the meeting
Sugar and chocolate	George.hyde@defra.gov.uk or tanyel.sonuvar@defra.gov.uk	Friday 5th March, 12:00	Click here to join the meeting
Drinks	james.walsh@naturalengland.org.uk	Friday 5th March, 10.00	Click here to join the meeting
Animal Feed	Maria.Brown@defra.gov.uk	Friday 5th March, 15:00	Click here to join the meeting
At risk goods and UK trader scheme (second session)	aleyce.thompson@defra.gov.uk	Tuesday 2nd March, 11:00	Click here to join the meeting

 

The scope of these sessions is summarised below: What are Rules of Origin (RoO) and access to Preferential Tariffs

• Why RoO are required compared to trade within a Customs Union.
• What are the rules for this particular sector and what they mean.
• What are the facilitations to help meet the rules;
• Bilateral Cumulation
• Tolerance
• Accounting Segregation
• Case Studies
• RoO and their interaction with the Northern Island Protocol
• Proving RoO (overview)
• RoO and trade with Turkey, Norway & Iceland

Invitation to Join UK Flour Millers(previously NABIM) R&D Seminar

You are invited to attend:   UK Flour Millers R&D Seminar Get up to speed on the latest research affecting the milling industry, from grain to loaf by joining one or both of our online webinars This year’s event will be held remotely, and has been split over two days Wednesday 10 March and Thursday 11 March both between 10.00 and 11.30am     Event programme   Day 1 10th March 10:00 – 11:30am Milling wheat and contaminants The session for the day features the following presentations: Gene editing opportunities for UK milling wheat – Prof Huw Jones (Aberystwyth University) Understanding the carbon footprint of milling wheat – Dr Daniel Kindred (ADAS) Management of ergot alkaloid contamination – Eric Capodanno (Phytocontrol)     DAY ONE >> >> speaker information & to book tickets   Day 2 11th March 10:00 – 11:30 Nutrition and food processing The session for the day features the following presentations: Ultra-processed foods: Research, headlines and consumer views – Bridget Benelam (British Nutrition Foundation) Improving the glycaemic response to white bread without affecting taste – Dr Cathrina Edwards (Quadram Institute) Developing coeliac-friendly gluten whilst maintaining functionality – Dr Miguel Ribeiro (University of Trás-os-Montes and Alto Douro)   DAY TWO >> >> speaker information & to book tickets