IGD - Economics bulletin 05 November
05 November 2021Your overview of political and economic news with a focus on the food and consumer goods industry, featuring the latest developments and guidance on COVID-19...
Your overview of political and economic news with a focus on the food and consumer goods industry, featuring the latest developments and guidance on COVID-19, labour shortages and adapting to a new relationship with the EU.
UK household incomes
In evidence to the Treasury Select Committee, Professor Charlie Bean, board member of the Office for Budget Responsibility, has predicted that growth in household incomes, after taking account of inflation, will stall over the next two years.
This follows the autumn 2021 budget last week from the Chancellor and new economic forecasts from the Office for Budget Responsibility.
Shopper confidence dips
IGD’s latest Shopper Confidence Index has declined to its second lowest level recorded, having declined for five out of the last six months. Shoppers are increasingly fearing food price inflation and focusing more on saving money. ShopperVista subscribers can access the full report here.
Labour shortages update
With a shortage of butchers, it has been confirmed that until 31 December up to 800 pork butchers will be eligible to apply for visas from the existing allocation in the Seasonal Workers Pilot Scheme, allowing them to travel and work in the UK for a period of 6 months.
This follows proposals to support the pig industry.
The British Meat Processors Association (BMPA) has called for additional visas to be made available amid reports of carcasses being sent to the EU for butchering.
All relevant businesses have up until 15 November to apply for temporary visas for poultry workers and 01 December for temporary visas for HGV food drivers. See here for more details.
UK-EU negotiations
The UK government and EU commission are continuing a period of intense clarification talks about EU proposals for the Northern Ireland Protocol. Lord Frost recently reported that “while there is some overlap between our positions on a subset of the issues, the gap between us remains substantial.”
The UK government is also in negotiations with France and the EU to resolve a dispute over post-Brexit fishing rights. France had threatened a series of measures that may have led to a ban on British trawlers landing their catches in French ports and tighter customs checks on cross-Channel trade.
A harsh winter ahead
Download a free copy of IGD’s newly published Viewpoint: A harsh winter ahead? report. Register for our free webinar on 11 November here
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