IGD - Economics bulletin 15 October
15 October 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.
Northern Ireland Protocol
The EU has published proposals to reduce the amount of paperwork and the number of internal UK border checks as part of the Northern Ireland Protocol. This covers the following four areas:
The proposals would see:
An 80% drop of spot checks on retail goods arriving in Northern Ireland (NI) from the rest of the UK
Vehicles would only need to provide only one all-encompassing certificate rather than the requirement for certificates for all products included in a lorry
Customs paperwork on goods entering NI from Great Britain would be halved by expanding trusted trader arrangements
Increased engagement with stakeholders in NI including business representatives
Some industry representatives have raised concerns that the EU proposals may not sufficiently address the challenges of moving agrifood products from GB to NI.
This follows a speech from Lord Frost earlier this week in which the UK government asked for changes to the Northern Ireland Protocol, particularly relating the role of the European Court of Justice.
There will now follow a period of intense clarification talks for both sides to get a better understanding of the details of the proposals.
Availability concerns increase
Recent research conducted by IGD revealed that more adults claim to have experienced shortages of some food and groceries in-store or online recently (67% vs 62% the previous week).
There has also been an increase in the number of adults who have recently felt the need to stock up or purchase more than they normally do (34% vs 27% the previous week).This increases to 51% in London compared to 22% in Scotland.
Labour shortages – applications for visas
The government is encouraging all relevant businesses to apply on a first come first served basis for the following visas:
4,700 visas for HGV drivers who will arrive from late October and leave by 28 February 2022
5,500 visas for poultry workers who will arrive from late October and be able stay up to 31 December 2021
Download a free copy of IGD’s Viewpoint special edition: Focus on Labour Shortages.
The report explores the labour problems encountered in 2021 in more detail and provides actions businesses could take to mitigate this risk in the future.
Labour shortages – New measures for HGV drivers and the pig industry
A package of measures has been announced by government that will allow:
Foreign transport operators to make unlimited journeys for two weeks before returning home
Trained butchers to come to Britain on temporary visas.
Subject to a one-week consultation that started on 14 October 2021, the temporary measures would come into force towards the end of this year for up to 6 months.
This data follows calls from industry for help from the government to address a shortage of butchers. This has led to the culling of some animals.
CO2 supplies agreement
An agreement has been reached to ensure UK businesses have access to a sustainable supply of CO2. Under the agreement CO2 suppliers have agreed to pay CF Fertilisers a price for the CO2 it produces. While this agreement ensures steady supply of CO2, concerns have been raised by industry representatives that this will lead to further increased costs. It is unclear to what extent these costs will be passed on to consumers.
This follows the three week agreement between the government and CF Fertilisers to enable the restart of CO2 supplies.
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