Dear All,
Detailed below is the Weekly News and Covid 19 Update for 5th October.
Have a good week.
Gordon Polson
Chief Executive – Federation of Bakers Ltd
FOB Chief Executive’s Weekly News for 5th October 2020
Barclays Economic Update: UK Gross Domestic Product (GDP) Decreased by 19.8% in q2’20
According to data published by the Office for National Statistics (ONS), UK quarterly GDP is estimated to have decreased by 19.8% in q2’20, revised from the initial estimate of 20.4%. This is the largest quarterly contraction in UK GDP since quarterly records began, reflecting the impact of the ongoing covid-19 containment policies by the government.
In q2’20, a decline was recorded across services, production and construction output compared to q1’20. Services output decreased by 19.2%, with the largest decline recorded in accommodation and food services output by 85.7%. Production output decreased by 16.3%, with the largest decline recorded in manufacturing output by 21.1%. Construction output decreased by 35.7%, with decline recorded in both new work as well as repair and maintenance activities.
Additionally, decline was recorded in all types of expenditure in q1’20. Private consumption decreased by 23.6%, general government expenditure by 14.6% and gross capital formation by 21.6% during the same period.
Meanwhile, import volumes decreased by 22.7% and export volumes by 11.0% in q2’20. Decline in gross trade flows in and out of the UK reflected a decrease in global trade demand due to disruption in international supply chains owing to restrictions amid coffid-19.
Economic Sentiments Indicator (ESI) in Euro Area Increased to 91.1 in sep’20
According to the European Commission’s business and consumer survey, economic sentiment indicator (esi) in the euro area increased to 91.1 in sep’20 compared to 87.5 in aug’20. ESI in the European Union (EU) increased to 90.2 in sep’20 compared to 86.8 in aug’20.
Increase in the headline index was primarily due to an improvement in optimism in the services sector. Sentiments in the services sector increased to -11.1 in sep’20 compared to -17.2 in aug’20.
Consumer confidence increased marginally to -13.9 in sep’20 compared to -14.7 in aug’20, supported by an improvement in expectations towards the general economic situation and a modest improvement in households’ outlook on their financial conditions
In terms of regions, the ESI continued to recover in all major euro area economies, including Italy, France, the Netherlands, Spain and Germany.
Increased PPE Production to Ensure Continuous Flow to Frontline
The Department of Health and Social Care (DHSC) has announced that a significant increase in domestic production of personal protective equipment (PPE) will ensure continuous supply to health and social care workers treating coffid-19 patients.
Four-month stockpiles of key items such as face masks, visors and gowns will be in place from nov’20 to meet the requirements of frontline staff by ensuring a continuous provision of the same. Facilitated by the increase in domestic PPE production, 70% of the expected demand for PPE will be fulfilled by UK manufacturers.
Matt Hancock, UK Health and Care Secretary, stated that the UK has built resilient supply chains to ensure uninterrupted supply of PPE to health and social workers, with support from UK businesses.
COVID-19 Autumn/Winter 2020 Guidance for Food, Horticulture and Agriculture website launch
A new website www.foodfarmhelp.com has been launched specifically designed to provide the latest practical tips, guidance, tools and case studies to help businesses in the food, agriculture and horticulture industries to better manage risks associated with the COVID-19 pandemic during the autumn and winter period
New legal duty to self-isolate comes into force
From 28 September people in England are now required by law to self-isolate if they test positive or are contacted by NHS Test and Trace. Read more here here.
Home Office Points Based Immigration System
The Home Office has launched new materials to help employers prepare for the introduction of the new Points Based System, and how to become a sponsor for the purpose of hiring people from outside the UK.
Northern Ireland Protocol: In case of interest, FDF and NIFDA has this week published infographics highlighting the proposed framework of complex regulations, certifications and checks that will enter into force from 1 January 2021 for movements of food and drink under the Ireland/Northern Ireland Protocol. The two infographics set out the requirements for each trade flow:
UK Food Industry EU Guidance: Link to the revised EU Exit Food Hub
WRAP announces new Food Waste Action Week for 2021
WRAP will trailblaze a new week of action in March 2021 to wake the nation up to the environmental consequences of wasting food.
The inaugural Food Waste Action Week will run from Monday 1 to Sunday 7 March 2021, and will bring together organisations from retailers to local authorities, restaurants to manufacturers, and beyond. WRAP will work with a variety of partners to show that wasted food is an issue that affects everyone – and the planet. Wasted food contributes 8–10% of total man-made greenhouse gas (GHG) emissions, and roughly one third of food produced around the world is wasted.
The Week will also focus on the Hospitality and Food Service sector, looking at what changes they can implement to ensure as little food as possible is thrown away. Building on the success of the 2019 Stand Up For Food month, this will shine a light on how Hospitality and Food Service businesses across the UK can reduce the 1.1 million tonnes of food wasted annually – a lot of which comes from food ordered but not eaten.
EC authorises another GM soybean for food & feed
The European Commission (EC) has announced that it has authorised a genetically modified (GM) soybean for food and feed uses. This soybean (MON 87708 x MON 89788 x A5547-127) has been through a comprehensive authorisation procedure, including a favourable scientific assessment by the European Food Safety Authority (EFSA). The authorisation decision does not cover cultivation. All Member States had the right to express their view in the Standing Committee and subsequently the Appeal Committee. This authorisation is valid for 10 years. Any products produced from this GM soybean will be subject to the EU’s strict labelling and traceability rules.
Food labelling in the UK from 2021
The Defra Minister, Victoria Prentis, has confirmed that the Government plans to launch a food labelling consultation currently being drafted at the end of the transition period (31 December 2020). She also reaffirmed that the Government is committed to a serious and rapid examination of what can be done through labelling to promote high standards and high welfare across the UK market.
Food labelling & trading with the EU & N. Ireland
Sarah Olney has questioned the Government about the guidance on food and drink labelling it is making available to businesses trading with the EU and with Northern Ireland after the end of the Brexit transition period. In response the Defra Minister, Victoria Prentis, said that Ministers meet regularly with food manufacturers and other parts of the supply chain to discuss preparations for the end of the transition period, including for food labelling. While EU food labelling requirements are a matter for the EU, she confirmed that the UK Government will provide a period of adjustment for labelling changes required at the end of the transition period, wherever this is possible. During this period the changes that UK businesses need to make when selling between different markets will be minimised. Ms Prentis said that the Government is working to determine the appropriate time industry needs to make changes and will provide guidance as soon as it can do so in order to ensure that businesses have clarity and certainty. In the meantime, the Government response to its consultation on its approach to nutrition labelling to reflect the Northern Ireland Protocol in law and ensure that nutrition legislation in Northern Ireland operates effectively after the end of the transition period has now been published.
Advice for NI businesses on moving goods
HM Revenue & Customs (HMRC) has sent letters to VAT-registered businesses in Northern Ireland highlighting action they need to take to prepare for new processes for moving goods under the Northern Ireland Protocol from 1 January 2021.