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What does the Budget mean for food manufacturers?

What does the Budget mean for food manufacturers?

The Food and Drink Federation (FDF) has welcomed news of several policies that will benefit those working in the UK's food manufacturing sector that were announced by chancellor George Osborne in his latest Budget speech on Wednesday March 19th.

Mr Osborne said the government will be taking steps to cut energy costs for production firms to enable them to make significant savings.

With regard to beverages, the chancellor has announced that beer duty will be cut, which could potentially lead to more jobs being created in the country's food and drink sector.

To conclude this point, Mr Osborne said: "Pubs saved - jobs created."

However, the sector will primarily benefit from cuts to energy prices, which the FDF has been campaigning in favour of for some time.

The chancellor said: "We are going to have a £7 billion package to cut energy bills for British manufacturers."

Melanie Leech, director general at the FDF, said: "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."

She added that the FDF is extremely pleased the government has taken note of the organisation's concerns about energy costs.

In addition to this, Mr Osborne said the government will be capping Carbon Price Support rates at £18 for the rest of the decade, which could see medium-sized food manufacturing firms saving up to £50,000 per year on their energy bills alone.

With food manufacturing currently the UK's largest production sector, these Budget announcements are set to benefit thousands working in the industry.

Elsewhere in the country's food and drink sector, those working in pubs and restaurants will see new legislation regarding alcohol tax, that will prevent it from being sold below minimum rates. 

The chancellor believes this is a much more sensible approach to alcohol duty than targeting those who drink moderately and responsibly.

It will certainly be interesting to see how much money food manufacturers end up saving and the number of new jobs that are created in the industry thanks to the latest Budget.

 

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