FOB Chief Executive’s Weekly News for 22nd March 2021

The Bank of England has today published the March 2021 Agents’ Summary of Business Conditions. Please see below the link to the digital version:

https://www.bankofengland.co.uk/agents-summary/2021/2021-q1

This publication summarises intelligence gathered by the Bank’s Agents between mid-January and late February. The Agents’ scores published alongside this document are based on information gathered over the same period but they generally represent activity over the past three months compared with a year ago. During the early stages of the pandemic in 2020, economic activity fell at an unprecedented pace, reflected in some Agents’ scores moving to the extremes of their range, where scores can be consistent with a wide range of quantitative outcomes. Although activity has recovered relative to the troughs in early 2020, a number of the Agents’ scores have remained very low. In part, that reflects activity in some areas remaining consistent with the extremes of their distribution, despite the recovery – especially as most scores compare the current situation with a year ago.

Barclays Update: UK total trade deficit decreased by £3.7bn to reach £1.9bn in jan’21

According to estimated data published by the Office for National Statistics (ONS), the total UK trade deficit, excluding non-monetary gold and other precious metals, decreased by £3.7bn to reach a deficit of £1.9bn in jan’21. The trade deficit in goods stood at £10.1bn, while trade surplus in services stood at £8.2bn in jan’21.

In jan’21, the import of goods, excluding non-monetary gold and other precious metals, decreased by 21.6% (£8.9bn). The downturn was driven by a 28.8% decrease in imports from the European Union (EU). A decrease in imports was reported in machinery & transport equipment, chemicals, import of cars and medicinal & pharmaceutical products.

The export of goods, excluding non-monetary gold and other precious metals, decreased by 19.3% (£5.3bn) in jan’21. the downturn was driven by a 40.7% decrease in exports to the EU. Jan’21 recorded the largest monthly decrease in imports and exports, in both current price and chained volume measures, since records began in jan’97.

Health Certificates – GB The APHA has published a number of Export Health Certificates (EHCs) to export products from Great Britain to the EU or move them to Northern Ireland. These can be accessed via the ‘Find an export health certificate’ page which also provides information on status and supporting documents

Trader Showcase Site for Moving Goods to Northern Ireland – UK The online Trader Showcase site providing information on new rules for moving goods to Northern Ireland and exporting to the EU has been migrated to two new locations, which can be accessed via the following links: • Moving goods from Great Britain to Northern Ireland; and • Exporting goods from Great Britain to the European Union.

BRC Guide on Rules of Origin – UK The BRC published on 4 March 2021 a guide on Rules of Origin (RoO). The guide, produced in partnership with Deloitte, helps explain the new rules, stipulating which goods are, and are not, subject to zero tariffs, and their practical application across different supply and distribution chains.

£20 million SME Brexit Support Fund opens for applications

The fund will help smaller businesses with changes to trade rules with the EU. Smaller businesses can apply for grants of up to £2,000 to help them adapt to new customs and tax rules when trading with the EU. The £20 million SME Brexit Support Fund enables traders to access practical support, including training for new customs requirements, rules of origin and VAT processes.

Coronavirus response updates:

Shielding advice for the clinically extremely vulnerable to stop from April

More than 3.79 million clinically extremely vulnerable people in England will be informed they are no longer advised to shield from Thursday 1 April 2021.

Work place Testing: The update I received today is that 72,000 businesses have registered to offer workplace testing. As a reminder if you don’t sign up by 31^st March and subsequently wish to sign up e.g. for home testing you will not qualify for free test kits.

HMRC Update: The latest information about financial support schemes available to help you, including the VAT deferral new payment scheme and the Coronavirus Job Retention Scheme (CJRS).Also included is information on the Department of Health and Social Care’s national workplace testing service.

1. VAT deferral – apply now to spread your payments
2. You can now make CJRS claims for March
3. Extension to the CJRS
4. Frequently asked questions about the CJRS
5. Where can I get further support?
6. National workplace testing for COVID-19
7. Protect yourself from scams

Revised Food Law Code of Practice & guidance for England & N. Ireland

The Food Standards Agency (FSA) has published revised Food Law Codes of Practice and Food Law Practice Guidance for England and Northern Ireland, following consultation on these issues last year.  The Codes provide statutory guidance to Local Authorities and Port Health Authorities on the approach they should take to regulate food businesses. The key changes include: modernisation of the baseline knowledge, skills, and experience requirements to enable a wider cohort of relevant professionals in England and Northern Ireland to undertake official food controls and other official activities; the introduction of a Competency Framework that defines competency by activity rather than by role; and the introduction of a provision to enable the FSA to be more responsive in issuing advice and to enable Local Authorities to depart legitimately from the Codes, in limited circumstances. The FSA in Wales is still consulting on these proposed changes, until 25 March 2021.

European Commission consults on food additives

The European Commission (EC) is consulting on draft regulations that will amend EU rules on food additives so that they comply with the EU Transparency Regulation on risk assessment in the food chain. The deadline for responses to this consultation is 9 April 2021. The Commission expects to adopt the new regulations in autumn 2021.

Food in a Pandemic

The Food Standards Agency (FSA) has published the findings of a report, commissioned by the FSA and produced by Demos, which explores how a new food environment created during the Covid-19 pandemic has impacted the public’s behaviour and preferences.  It shows both that people volunteered to help prevent new forms of food insecurity caused by people self-isolating by offering informal support, such as shopping for others; and that there is a public appetite for the Government to take action to help feed those without the means to feed themselves.  The report also indicates that a significant proportion of the population bought food more locally or have grown more food during the pandemic. It also shows strong support – 78% of those surveyed – for the UK keeping its current food quality standards, even if food is more expensive and less competitive in the global market.  A similar proportion (82%) also supported maintaining the UK’s current animal welfare standards, when presented with the same trade-off against prices and competitiveness.  The report also reveals a complex shift in people’s diets during Covid-19, with more home cooking.  Although a third (32%) of respondents in the poll reported eating more healthy main meals, a third (33%) ate more unhealthy snacks.  Some of the restrictions, such as stay at home,  and public health advice may have encouraged more healthy eating. Those who have cooked more or eaten healthier main meals tend to expect this change to continue, but this may well depend on the extent to which other changes experienced during “lockdown”, such as much more extensive flexible working, persist.

2021 IBA show postponed to 2023. The international trade fair for the bakery and confectionery industry was due to take place on 24-28 October but the next IBA has now been scheduled for 22-26 October 2023. The organiser, GHM Gesellschaft für Handwerksmessen, said the decision for the postponement was due to uncertainty around Covid-19 travel restrictions.