Dear All,
Detailed below is the Weekly News and Covid update, not to mention EU Exit, for 7th December.
Will it be deal or no deal?
Gordon Polson
Chief Executive – Federation of Bakers Ltd
FOB Chief Executive’s Weekly News for 7th December 2020
Barclays Economic Update: UK manufacturing pmi increased to 55.6 in nov’20
According to data published by HIS Markit/CIPS seasonally adjusted UK manufacturing purchasing managers’ index (pmi) increased to 55.6 in nov’20 from 53.7 in oct’20.
In nov’20, manufacturers in the UK registered increased inflows of new work from overseas. The demand was primarily supported by forward purchases from European union clients before the end of the Brexit transition period. In addition, higher intakes were reported from Asia and the US.
In terms of sectors, intermediate and investment goods industries reported an increase in production output in nov’20. However, consumer goods sector reported decreases in both production and new orders during the same period.
Input purchase volumes increased in nov’20, with the upcoming end to the Brexit transition period affecting the trends in purchasing, stocks and supplier lead times. Higher levels of input purchases put additional pressure on supply-chains. Longer supplier lead times were also linked to the ongoing impact of covid-19, with renewed lockdown restrictions leading to shipping delays.
Eurozone manufacturing pmi decreased to 53.8 in nov’20
According to data published by HIS Markit/CIPS, seasonally adjusted eurozone manufacturing pmi decreased to 53.8 in nov’20 from 54.8 in oct’20.
Growth in production and orders reflected a continued increase in purchasing activity by manufacturers, leading to longer average lead times.
In terms of broad market sectors, investment and intermediate goods sector recorded continued growth in output, while consumer goods producers recorded a modest decline in operating conditions.
In terms of regional output, all countries in the eurozone recorded a decrease in manufacturing pmis in nov’20 except the Netherlands and Ireland. Germany recorded the highest manufacturing pmi in nov’20 at 57.8, followed by the Netherlands at 54.4, Ireland at 52.2, Austria at 51.7 and Italy at 51.5.
Covid Priority Testing for Food Industry – FDF is coordinating priority testing for the food industry, first major UK industry sector to get priority testing. Priority testing programme is being run by a sub-group of NHS Test and Trace called ‘Test to Enable’ headed by Sue Hayes running a team of NHS staff and other contractors. There have been a few pilots already (canning/distribution/meat factories) but will conduct pilot scheme testing across the food industry to all 4 nations from next week for a period of 4 weeks until national roll out in the New Year.
If you are interested in being part of the pilot scheme please let me asap. I will then pass on your contact details to FDF. There is of course no guarantee you will be involved in the pilot. I am ‘jumping the gun’ on this as I have not heard this officially but to have the chance of participating in the pilot we need to respond now.
I suggest Information required:
Contact name and email address.
Address of workplace.
Number of Employees
Outline details are testing will take place twice weekly in the factory or workplace setting as cannot cope with numbers quickly enough through GP practices and other healthcare settings. Testing will be provided free of charge and will include a lateral flow test.
Current information regarding the Government’s rapid testing workstreams is located within HMG’s Winter Plan (p15 – 18). Information can be found here.
Workplace canteens
The updated guidance states that workplace canteens which are only open to staff at that workplace are not required to collect the details of their staff who visit the canteen. If a workplace canteen may be accessed by members of the public however (for example, anyone who is not an employee), then this venue would be required to collect the details of customers, visitors and staff. The updated guidance can be found in the link below
https://www.gov.uk/guidance/maintaining-records-of-staff-customers-and-visitors-to-support-nhs-test-and-trace
Heat Treated Pallets: FDF shared the following update:
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- Gov.uk guidance on the requirement to have heat treated pallets for imports from 1 Jan 21
- As there will be no immediate change to the biosecurity threat of wood packaging material originating from the EU at the end of the Transition Period, GB will maintain its current risk-based checking regime for EU wood packaging material. The UK Timber Pallet and Packaging Confederation (TIMCON) is, however, strongly encouraging the European Federation of Wooden Pallet and Packaging Manufacturers (FEFPEB) and EU national associations to engage and support their countries’ wood packaging material industries to increase their own stocks of compliant pallets.
Travel Relaxation:Business directors bringing jobs and investment to the UK
Applies to certain senior executives (directors or equivalents) travelling or returning to England who would be likely to bring significant economic benefit to the UK as a result of their activity.
Senior executives are only exempt if the business activity requires their physical presence and cannot be done remotely.
Senior executives are classed as bringing ‘significant economic benefit’ if the work they are doing has a greater than 50% chance of either:
creating or preserving at least 50 UK-based jobs in either:
an existing UK-based business which has at least 50 employees
a new UK business within 1 year of the date of their arrival in the UK
purchasing goods or services from a UK based business with at least 50 employees – the order must be worth at least £100 million, or the order would be likely to create or preserve 50 or more jobs in that business
The senior executive will need to complete the passenger locator form before travelling to the UK.
The senior executive will be required to self isolate, except when carrying out the specific activities that are likely to bring significant economic benefit to the UK (including travelling to and from the places in England where they undertake them).
They will also need to carry a letter signed by a company director from the businesses they are visiting. Where a new business is being created, the letter should be signed by a company director in the company proposing to create and own that new business.
The letter must be written on company headed notepaper of the signing senior executive’s firm and include the following information:
the full name of the senior executive undertaking exempt activity
date of birth
passport number
UK address at which the senior executive is otherwise self-isolating
the specific activity/activities to be undertaken, their duration, the date/s and location/s in which they will take place
contact details including a direct phone number for the senior executive signing the letter and for their business
a short explanation which gives evidence of the need for the activities to be performed by the senior executive at the specified location/s and why the activity is more likely than not to deliver significant economic benefit to the UK
Read the full guidance on travel exemptions in England for senior executives.
The regulations must also be consulted prior to travel to ensure eligibility.
Organic Produce: EU agrees to recognise UK organic control bodies; trade in organics can continue until 31 December 2021
There has been a positive policy development regarding the exporting of organic goods after the transition period. Previously, the UK government committed to recognise the EU as equivalent in terms of organics for one year from 1 January 2021. The EU has now agreed to recognise the UK control bodies and trade in organics can continue until 31 December 2021. We will be shortly updating our guidance on GOV.UK to reflect this announcement.
Points-based Immigration system
The Home Office has a campaign to ensure businesses are ready for the introduction of the UK’s new points-based immigration system as free movement ends. The nationwide marketing campaign will run throughout the Autumn, using a wide range of channels to reach employers, including radio, social media, digital, and outdoor advertising.
The key message for businesses is that the way they hire from the EU is changing, and to recruit from outside the UK, they will need to be a licensed sponsor. It is vital that employers are prepared for the implementation of the new points-based immigration system, which is why the Home Office is providing certainty and support on the system now.
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 | Spotify
FDF Brexit Event: Thursday 10 December Brexit Essentials: The end of transition. This virtual event is packed with three essential sessions to round-up everything we know about the end of the transition period so far, and provide assurance that you are taking the right steps. Register your place now » – Free for FDF Members
HMRC Update: The UK transition period ends in 28 days. If your business exports goods to the EU from Great Britain or you represent businesses who do, you’ll need to be prepared for some changes that will come into effect from 1 January 2021.
We understand these are challenging times, but it is important to make sure that your business is ready for these new rules. At the time of writing, talks are ongoing about our future trading arrangements with Europe, but you can be sure that these rules will not change or go away.
To help you prepare for these changes and give you the latest information we’re inviting you to join our live webinar:
Exporting: Actions you need to take to prepare for 1 January 2021
The webinar explains what actions you need to take to export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland.
We’ll provide a run-through of the key export processes – staged border controls, zero-rated VAT, customs declaration, using an intermediary, as well as licences, certificates and authorisations that you’ll need.
You can also ask questions using the on-screen text box.
Please register to take part and make sure you’re prepared for the end of the transition period.
We update our webinars constantly to provide you with the latest government guidance and information as it develops.
We also have a series of short videos on HMRC’s YouTube channel providing an introduction to importing and exporting. It might help you to watch these before attending the webinar including:
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