Dear All,
Detailed below is Weekly News for 15th June. Have a good week and take care.
Gordon Polson
Chief Executive – Federation of Bakers Ltd
FOB Chief Executive’s Weekly News for 15th June
Barclays Economic Update: According to data published by the office for national statistics (ONS), the UK’s economy decreased by 20.4% in apr’20 in the biggest monthly decline since records began, as the covid-19 lockdown immobilised the country.
ONS official figures for gross domestic product (GDP) indicated the impact of measures that forced businesses across the UK to close and millions of workers to be put on furlough.
No area of the economy was left unharmed as people were told to stay at home to prevent the spread of covid-19 and businesses closed. The UK’s services sector contracted by 20%, driven by the closure of the high street, decreasing sales of cars, as well as pubs, restaurants and hotels. International supply chains faced disruption along with the need to protect workers. Shutdowns in production at many factories and the running of reduced hours at others led manufacturing output to decline by 25%. With cranes and diggers across the country falling idle as the virus spread, construction output declined by 40%.
According to data published by Eurostat, seasonally adjusted GDP decreased by 3.6% in the Euro Area and by 3.2% in the EU during q1’20, compared to a 0.1% increase in both the EA and the EU in q4’19. These were the sharpest declines observed since time series started in 1995.
In q1’20, household final consumption expenditure decreased by 4.7% in the EA and by 4.3% in the EU, compared to +0.1% and +0.3% respectively in q4’19.
Gross fixed capital formation decreased by 4.3% in the EA and by 3.9% in the EU, compared to +5.0% and +4.3% respectively in q4’19
Exports decreased by 4.2% in the EA and by 3.5% in the EU compared to +0.1% and -0.1% respectively in q4’19
Imports decreased by 3.6% in the EA and by 3.2% in the EU compared to +1.9% and +1.5% respectively in q4’19
At industry level in q1’20, the sharpest declines were observed for trade, transport, accommodation and food service activities at -6.8% in the EA and -6.2% in the EU, while agriculture showed the mildest declines at -0.8% in the EA and -0.7% in the EU.
In q1’20, the number of people employed decreased by 0.2% in the EA and by 0.1% in the EU compared to q4’19. This is the first decline in the time series since q2’13 for the EA and q1’13 for the EU. in q4’19, employment increased by 0.3% in the EA and by 0.2% in the EU.
Based on data published q4’19by Eurostat, in q1’20, 209.1 million people were employed in the EU, of which 160.4 million were in the EA. In relation to the covid-19 pandemic, employment decreased by 0.3 million in the EA and by 0.2 million in the EU when compared to q4’19. While the effect of the covid-19 pandemic on employment was mitigated by government support schemes, the impact on hours worked is generally much more noticeable. The number of hours worked decreased by 3.1% in the EA and by 2.6% in the EU in q1’20 compared to q4’19
CBI COVID Update: As part of the government’s phased easing of lockdown measures, today shops and high streets across the country will start to reopen today. Many chains are choosing to stagger the restart to ensure they have Covid-secure measures in place, such as Perspex screens at tills, extra signage, and processes to manage customer flow. However, some businesses aren’t able to reopen and the 1 metre versus 2 metre debate remains live. Health advice must absolutely lead the way, and whatever outcome, any change must be coordinated with businesses and unions.
Today also marks the start of face coverings being mandatory on public transport.
The government’s advice remains that people should avoid using public transport as much as possible. However, for those that do need to travel, evidence suggests wearing a face covering offers some, albeit limited, protection against the spread of the virus. Transport operators and the British Transport Policy will lead on the enforcement which includes refusing access to those not wearing face coverings on buses and trains, and/or fining people if they refuse to comply.
Most businesses continue to encourage those who can work from home to do so and, while risk of infection remains high, most employees are committed to avoiding unnecessary travel. To support those who are unable, or struggling, to work remotely, many firms are considering staggering shifts and promoting alternative or active methods of travel where possible. Several employers have told us that their employee surveys demonstrated that staff felt confident about being safe at work, but were less sure of the safety of travel, particularly when they relied on public transport. For some, this shift in the guidance on face coverings may make a positive difference, but a key practical issue for employers is how they manage the risk of storage and/or disposal of faces coverings once employees enter the workplace.
Employees need to feel confident that they can keep safe on their commute, though there is an outstanding question on employer liability and where the burden of responsibility lies if employers provide face coverings and/or require people to come into work.
On the Job Retention Scheme, and other government support schemes, last Friday the Treasury released the latest figures on the uptake of the scheme:
- Under the JRS, up until the 31 May, more than 8.4 million jobs were furloughed across the United Kingdom.
- Under the Self-Employment Income Support Schemes (SEISS), over 2.3 million have made claims totalling nearly £7 billion across the United Kingdom.
- 70% of those potentially eligible for support through the self-employment scheme made a claim, with the average value of claim amounting to £2,900.
The JRS scheme will continue to support jobs until the end of October, with flexible part-time furloughing beginning in July, and the SEISS scheme has also been extended with those eligible able to claim a second and final grant in August. The CBI will continue to closely monitor the uptake of these vital support schemes to ensure the government are aware of any remaining issues with the system.
Last week, the first figures on the government’s Test and Trace programme were released highlighting that from 28th May – 3rd June over 31,000 close contacts of 8,000 people who had tested positive for coronavirus in England were identified. Of those contacts, 85% were reached in 24 hours and asked to self-isolate for 14 days. These figures mark a positive start to what could be a crucial programme to help ensure we avoid future country-wide lockdowns, should infections rise.
On Thursday, the Department for Transport (DfT) released guidance for passengers and operators on safe air travel during COVID-19. This follows close collaboration with industry and marks an important milestone for the government’s International Aviation Taskforce, designed to ensure the safety of air travel while mitigating risk of transmission across borders. The CBI will continue to work with its members and government to ensure that any re-evaluation of the policy is evidence-led.
Finally, on access to finance, lending figures continue to rise, however the lingering issue of accredited lenders remains. Several non-bank and fin-tech lenders, estimated to support around 30% of SME businesses, still do not have access to the Bank of England SME-term funding needed. The CBI are continuing to work to unlock this capacity.
HMRC Update: We wrote to you last week to help you prepare for changes to the Coronavirus Job Retention Scheme (CJRS), and detailed guidance on these changes is now live on GOV.UK.
You can find this guidance by searching for ‘Coronavirus Job Retention Scheme’ on GOV.UK.
What the new online guidance covers
The guidance includes:
- changes to the scheme and key dates that you need to be aware of
- how you can claim if you bring previously furloughed employees back to work part-time from 1 July (known as flexible furloughing) and how many employees you can claim for in any one claim
- how to claim, and the information you’ll need to do so
- how to work out how much you can claim, including an online calculator to help you
- more information on amending your claim.
Webinars offering more support on changes to the scheme and how they impact you are now available to book online – go to GOV.UK and search ‘help and support if your business is affected by coronavirus’.
We’d be grateful if you don’t call us for more information. All details are on GOV.UK and in our webinars. This will leave our phone lines open for those who need them most.
What you need to do now
- read the guidance to see how changes to the scheme impact you, using the calculator to understand how much you’ll be able to claim
- book a webinar via GOV.UK if you’d like more support
- consider which employees you want to keep on full-time furlough and which employees will come back to work – on what hours – to agree arrangements with them as needed for your business.
What you need to do from July
- start your flexible furloughing of employees from 1 July onwards. You can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a job retention scheme grant to cover any of their usual hours they are still furloughed for. You can still keep employees on full furlough if you need to
- claim for periods ending on or before 30 June, by 31 July – this is the last date you can make those claims
- claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1 July.
Protect yourself from scams
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.
I hope this information helps and supports your business and we’ll continue to keep you updated on scheme developments over the coming weeks.
- UK Government Borders announcement
Following a meeting with the Withdrawal Joint Committee, the UK has formally notified the EU that it will neither accept or seek any extension to the Transition Period.
However, coronavirus has had an unprecedented impact on all aspects of life and because of this we are introducing border controls in stages for EU goods imported into GB to give businesses more time to prepare. The stages are:
- From January 2021: Traders importing standard goods, covering everything from clothes to electronics, will need to prepare for basic customs requirements, such as keeping sufficient records of imported goods, and will have up to six months to complete customs declarations. While tariffs will need to be paid on all imports, payments can be deferred until the customs declaration has been made. There will be checks on controlled goods like alcohol and tobacco. Businesses will also need to consider how they account for VAT on imported goods. There will also be physical checks at the point of destination on all high risk live animals and a proportion of low-risk live animals.
- From April 2021: All products of animal origin (POAO) – for example meat, pet food, honey, milk or egg products – and all regulated plants and plant products will also require pre-notification and the relevant health documentation.
- From July 2021: Traders moving all goods will have to make declarations at the point of importation and pay relevant tariffs. Full Safety and Security declarations will be required, while for SPS commodities there will be an increase in physical checks and the taking of samples: checks for animals, plants and their products will now take place at GB Border Control Posts.
To support businesses with the new processes taking effect next year, Government has developed a new £50m package to boost the capacity of customs intermediaries – including customs brokers, freight forwarders and express parcel operators – providing businesses with further support. This funding will support intermediaries with recruitment, training and supplying IT equipment to help handle customs declarations. Rules will also be changed to remove barriers for intermediaries taking on new clients.
Additionally, we have committed to building new border facilities in Great Britain for carrying out required checks, such as customs compliance, transit, and Sanitary and Phytosanitary (SPS) checks, as well as providing targeted support to ports to build new infrastructure. We are consulting with ports across the UK to agree what infrastructure is required.
Today’s announcement is another important step towards getting the country ready for the end of the Transition Period, but there is still more work to be done by both government and industry to ensure we hit the ground running as a fully independent United Kingdom.
Please find details of the announcement here
HSE Update: Tell us how we can help you work safely
We value your feedback as an influential stakeholder in your industry.
Your help will inform our approach to communicating key information to ensure businesses continue to comply with the law using proportionate risk management.
We would like you to please take 2 minutes to complete this survey.
Make your workplace COVID-secure
Our guide will help you to make changes to your work to protect people, assess risk and be ‘COVID-secure’…Our guide will help you to manage the risk associated with restarting or running your business during the outbreak across a number of topics, including the latest advice on: |
HSE safety alert: Use of face masks designated KN95
HSE has issued a safety alert about the poor quality of face masks claiming to be KN95.
A substantial number of face masks, claiming to be of a KN95 standard, provide an inadequate level of protection and are likely to be poor quality products accompanied by fake or fraudulent paperwork. These face masks may also be known as filtering facepiece respirators.
View the safety alert for full details.
Work-related stress, worker wellbeing and mental health
One in four people in the UK will have a mental health problem at some point.Planning, training and support can all reduce pressure and bring stress levels down.
Our guidance talks generally about work-related stress. Where such stress is prolonged it can lead to both physical and psychological damage, including anxiety and depression.
There is advice for line managers to help them support workers with mental health conditions.
For further advice on managing stress in the workplace, download our talking toolkit. |
Being COVID-secure: stakeholder feedback required
We have received feedback from stakeholders on how they are making workplace adjustments to be COVID-secure.
We are featuring these as case studies on our Campaign microsite for others to benefit from.
We want to hear about measures you have put in place relating to social distancing, track and trace, hygiene and risk assessment. Tell us about what you have done by emailing us here
British Nutrition Foundation: Link to report on wholegrains.
https://onlinelibrary.wiley.com/doi/toc/10.1111/(ISSN)1467-3010.wholegrainshttps://onlinelibrary.wiley.com/doi/toc/10.1111/(ISSN)1467-3010.wholegrainshttps://onlinelibrary.wiley.com/doi/toc/10.1111/(ISSN)1467-3010.wholegrainshttps://onlinelibrary.wiley.com/doi/toc/10.1111/(ISSN)1467-3010.wholegrainshttps://onlinelibrary.wiley.com/doi/toc/10.1111/(ISSN)1467-3010.wholegrains
Vitamin D news, Prof Judy Buttriss (BNF) and Prof Susan Lanham-New (University of Surrey) have written an Editorial for Nutrition Bulletin ‘Is a vitamin D fortification strategy needed?’