The food and drink industry has welcomed the recent budget announcement in the UK, as it is set to benefit from a number of key areas including energy, investment and exports. The Chancellor of the Exchequer, George Osborne, made his 2014 Budget announcement yesterday on 19 March, and within this he also announced he would abolish the alcohol duty escalator and freeze a duty on spirits and cider.
His annual statement outlines the state of the UK’s economy.
Commenting on the Budget Statement, Melanie Leech, Director General at the Food and Drink Federation, the voice of the UK's largest manufacturing sector, said: “Food and drink, the UK's largest manufacturing sector, will benefit from many of the changes to energy, investment, exports and skills policy announced in this budget for manufacturers. It is over two years since FDF launched its vision shared with Government to grow the industry by 20% by 2020 and we welcome the measures announced today which are helping to make the UK an increasingly competitive place to invest.”
“The Chancellor has listened to our growing concerns on the impact of increasing energy prices on the competitiveness of food and drink,” said Leech. “The adoption of our recommendation for Carbon Price Support (CPS) to be frozen will help all manufacturers in our sector while the exemption of industrial Combined Heat and Power (CHP) plants from CPS for the on-site generation of electricity will benefit existing and new users of the technology which is in widespread use throughout our sector. These changes will provide welcome relief to businesses large and small throughout the UK's largest manufacturing sector and reward those who invest in energy efficient technologies.”
“The increase in the Annual Investment Allowance (AIA) introduced in early 2013 fuelled greater levels of CAPEX activity within food and drink manufacturing; the doubling of AIA announced today will be a further boost to business confidence and investment.”
“Support for R&D investment is vital to nurture innovation in food and drink manufacturing. The changes to the R&D tax credit scheme announced by the Chancellor will help more manufacturers access this support to drive improvements in their businesses, responding to the evolving needs of consumers while sustaining industry efforts to improve public health and reduce our environmental impacts.”
“Growing our industry's talent pool through apprenticeships is a key priority for food and drink manufacturers. Apprentices can inject enthusiasm and creativity, helping to support company objectives and they have the chance to gain the necessary qualifications whilst earning a wage."
"We welcome the announcement of the additional funding to establish higher level apprenticeships. The development of a robust skills 'pipeline' for food and drink companies is central to the sector's ability to deliver future sustainable growth.”
The Chancellor also announced he would abolish the alcohol duty escalator in this year’s budget. In his speech he also announced a freeze in duty on spirits and cider, and a 1p cut in duty on beer, taking a ‘penny off the pint’ for the second year running.
