Dear All,
Detailed below in the Weekly News and Covid 19 update for 26th October.
We were very pleased to be advised by the British Nutrition Foundation that our updated bread review report published in the Nutrition Bulletin, has been the most downloaded paper for the year to date.
Attached is the latest CBI Economic Update: 2020-10-economy-in-brief-october
Have a good week.
Gordon Polson
Chief Executive – Federation of Bakers Ltd
Barclays Economic Update: UK output producer price inflation stood at -0.9% during the 12-months to sep’20
According to data published by the office for national statistics (ONS), output producer price inflation (ppi) stood at -0.9% during the 12-months to sep’20. Meanwhile, the monthly output ppi stood at -0.1% in sep’20, compared to 0.1% in aug’20.
In terms of product groups, petroleum products provided the largest downward contribution to the output ppi, with an annual price inflation of -19.7% in sep’20. Additionally, chemical & pharmaceutical products and paper & printing products reported decreases in annual ppi at 1.7% and 0.8% respectively during the same period.
Meanwhile, input ppi i.e. inflation for materials and fuels purchased by manufacturers, stood at -3.7% during the 12-months to sep’20. Crude oil provided the largest downward contribution to the input ppi, with an annual price inflation of -34.1% during the same period. The decrease in crude oil prices in sep’20 was attributed to the change in demand factors due to extended lockdowns in some countries alongside travel restrictions.
The monthly input ppi rate in sep’20 stood at 1.1%, compared to -0.2% in aug’20. Crude oil provided the largest downward contribution to the monthly input ppi at -5.8% in sep’20. Meanwhile, prices for imported metals have increased by 6.6% during the same period.
Brexit Reminders:
Time is running out for businesses to prepare
The government has urged business leaders to step up preparations for Australia-style arrangements from 1 January and launched ‘time is running out‘ campaign.
Government steps up plans to keep trade flowing at the end of the transition period
Yesterday the Government launched plans to keep trade flowing after 1 January 2021. Following consultation with industry, legislation to enable the enforcement of Operation Brock has been brought forward to ensure the plans can be implemented if needed. This includes the prioritisation of journeys of a small number of HGVs with exports that are very time sensitive, such as fresh and live seafood, and day-old chicks. See the DfT consultation outcome here.
Exports of animal and animal products from Great Britain to the European Union – EHC Online registration now open to EU exporters
From 1 January 2021 exports of Live Animals and Products of Animal Origin from GB to the EU require an Export Health Certificate (EHC). Exporters will need to apply for EHCs online and can register for the online service now. You can view specimen EU EHCs and read the Notes for Guidance on gov.uk.
Baroness Bennett of Manor Castle has questioned the Government on its assessment of the Supreme Court of Ireland’s ruling in Bookfinders Ltd -v- Revenue Commissioners on 29 September that the bread used by Subway cannot be defined as bread, or classed as a staple food, due to the amount of sugar it contains. She also asked what plans the Government has to review the Bread and Flour Regulations 1998 to ensure that the legal description of bread meets public health criteria; and what steps they intend to take to promote public understanding of the sugar levels contained in bread used by fast food chains. In response the Defra Minister, Lord Gardiner of Kimble, said that he was aware of the judgement and agreed it is an interesting case. He suggested it was not about the general definition of bread or cake, but about specific VAT rates payable for different goods and services, in respect of exemptions to higher tax rates that rely on specific definitions of food. One of these is to define bread, for taxation purposes, as containing no more than 2% of any of a number of substances, including sugar. The court held that this was designated in order to avoid the exemption falling to the supply of food not considered a “staple” for which the exemption was designed, but to “indulgences”, which might, for example, include cakes and pastries. Lord Gardiner added that the definition of bread in The Bread and Flour Regulations 1998 (BFR) is intended for consumers rather than for tax purposes and the BFR are in place primarily as a public health measure to support population intakes of 4 nutrients: calcium, iron, niacin and thiamine. Defra has committed to reviewing the BFR, as they apply in England, after the Brexit transition period. This will take into consideration regulatory concerns raised by industry and any potential legislative changes that might arise from the joint UK Government and Devolved Administrations consultation on the proposed additional requirement to fortify flour with folic acid in order to help prevent neural tube defects in foetuses.
Defra has launched new rules and logos to guarantee the authenticity and origin of traditional and regional British produce such as Stilton cheese, Melton Mowbray pork pies and Scottish whisky, in order to help shoppers buy with confidence and to protect British producers from imitation. The 3 UK indicator logos, which were developed in conjunction with consumers, producers and the Devolved Administrations, are: Protected Designation of Origin (PDO), Protected Geographical Indication (PGI) and Traditional Speciality Guaranteed (TSG). The new rules and logos will apply from the end of the Brexit transition period on 1 January 2021, although producers will have up to 3 years to update their labels. Legislation laid in Parliament on 22 October will provide the legal framework in England, Scotland and Wales to administer and enforce the GI schemes; ensure continued protection of existing UK-origin GIs and non-UK GIs agreed through trade agreements; establish the new UK logo in law and ensure EU GI logos are no longer required on GB products. The Government has simplified the process for applying for permission to use the logos and has published guidance on it.
The Government has published its “organising principles” for the last stage of its negotiations with the EU about trading arrangements between the EU and the UK after the end of the transition period on 31 December 2020. It has also published updated “step by step” guidance for business on importing goods from the EU to Great Britain and on exporting goods from Great Britain to the EU from January 2020.
The UK government launched export growth plan
The UK government launched a support package to help businesses across England in their recovery post covid-19. The Department for International Trade’s (DIT) export growth plan includes a £38m internationalisation fund for small businesses. The plan will help up to 7,600 small and medium enterprises (SMEs) across England in growing their overseas trade.
Additionally, 64 new international trade advisers (ITAs) will provide direct support to SME businesses in the northern powerhouse, midlands engine and south east.. In addition, a new pilot export academy will be introduced to support smaller businesses in these regions which are looking for export opportunities.
Food processors face environmental permit investigation
The environment agency (EA) is investigating 52 companies with permits to discharge effluent from food into rivers and streams for possibly causing pollution in watercourses. The businesses under review include suppliers of various food categories, from fresh produce & vegetable processing to fruit juice, grain & cheese.
The EA has stated that the companies’ sites under review include regions from North Yorkshire to the Isle of Wight. The EAs assessment will account for sites located in protected areas and special consideration will be given to sites with environmentally sensitive watercourses nearby such as chalk rivers.
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| Dear customer,
We’re writing to let you know that we have published further information on the Job Support Scheme – including how you can check if you’re eligible and when you can make your first claim. You can find this on GOV.UK by searching ‘Job Support Scheme’. Job Support Scheme The Job Support Scheme (JSS) will open on 1 November and run for six months, until 30 April 2021. The government has said it will review the terms of the scheme in January 2021. There are two variations to JSS – JSS Open and JSS Closed. The UK government announced yesterday it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus. In recognition of the challenging times ahead, the Chancellor said he would be increasing support through the existing Job Support and self-employed schemes. JSS Open will provide support to businesses that are open where employees are working shorter hours due to reduced demand. Your employees will need to work at least 20% of their usual hours. You will continue to pay employees for the hours they work, and the UK government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month. You will pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if you choose. This means employees should receive at least two thirds of their usual pay for hours not worked. The caps are reduced according to the proportion of hours not worked. Further guidance on this will be available on GOV.UK shortly. You will need to cover all employer National Insurance and pension contributions. JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors. For JSS Closed, the UK government will fund two thirds of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month. You will not be required to contribute, but you can top up the government’s contribution if you choose to. You will still need to cover all employer National Insurance and pension contributions. You’ll be able to make your first JSS claim in arrears from 8 December, for pay periods ending and paid in November. We’ll let you know more about how to make a claim by the end of this month. Your employees will be able to check if you have made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV.UK, by searching ‘Personal Tax Account: sign in or set up’. Job Retention Bonus (JRB) You’ll be able to claim a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS), kept continuously employed until at least 31 January 2021 and who meets the other eligibility criteria. You do not have to pay this money to your employee. You will be able to claim the bonus between 15 February and 31 March. To do this you must have submitted PAYE information for the period up to 5 February 2021 on time. Further information on eligibility and when you can claim can be found on GOV.UK by searching ‘Job Retention Bonus Guidance’ and further guidance on the claim process will be published by the end of January 2021. Coronavirus Job Retention Scheme – closes on 31 October Please note that this scheme closes on 31 October and you will need to make any final claims on or before 30 November. You will not be able to submit or add to any claims after 30 November. From 1 October, the UK government has paid employers 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work. You continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You need to fund the difference between this and the CJRS grant yourself. The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in October, you are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). You must still pay your employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours you’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion yourself. For help with calculations, search ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ on GOV.UK. You’ll also continue to pay employer National Insurance and pension contributions from your own funds. You must keep the records that support the amount of CJRS grant you have claimed in case HMRC needs to check it. You can now view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV.UK. Claimed too much in error? It’s important that you check each claim is accurate before submitting it, and we would also recommend checking previous claims and repaying any amount over-claimed, so you will not have to pay interest and penalties if we subsequently discover you have claimed too much. If you have claimed too much CJRS grant and have not already repaid it, you must notify us and repay the money by the latest of whichever date applies below:
If you do not do this, you may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search ‘Interest rates for late and early payments’ on GOV.UK. How to let us know if you have claimed too much You can let us know as part of your next online claim without needing to call us. If you claimed too much but do not plan to submit further claims, you can let us know and make a repayment online through our card payment service or by bank transfer – go to ‘Pay Coronavirus Job Retention Scheme grants back’ on GOV.UK. Further support Guidance and live webinars offering you more support on changes to CJRS, JSS and JRB, and how they impact you, are available to book online – go to GOV.UK and search ‘help and support if your business is affected by coronavirus’. Our phone lines and webchat remain very busy, so the quickest way to find the support you need is on GOV.UK. This will leave our phone lines and webchat service open for those who need them most. Protect yourself from scams Stay vigilant about scams which may mimic government messages as a way of appearing authentic. 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 you and your business. We’ll continue to keep you updated on scheme developments over the coming weeks. |
FDF Free Webinar
I thought you might be interested in our upcoming free webinar, The changing energy mix: decarbonise your energy and save money now on 4th November 2020.
This webinar, in conjunction with Clarke Energy, BasePower and INNIO will help you understand the UK’s future energy mix and the relevance of decarbonisation, utilising combined heat and power (CHP). Learn how the food and drink sector can achieve vast cost savings and introduce new technologies, whilst future proofing production.
Why should I attend?
Join this webinar to discover:
When: Wednesday 4 November, 11am -12pm
Presenters:
George Fowkes, Director, BasePower
Adam Wray-Summerson, Chartered Engineer, Clarke Energy
Michael Smeeth, Director, INNIO
