Industry insights

As one of the largest suppliers to the pub sector, we stand firmly behind publicans as we approach the Autumn Budget.

We urge the government to urgently address the severe challenges currently faced across hospitality, and in particular within the pub industry.

Publicans need a fairer and more balanced tax framework – one that enables them to turn sales into sustainable profits, attract ongoing investment, and safeguard vital community spaces.

The pub sector continues to provide an essential pathway into employment for young and talented people. To protect these opportunities, and the jobs and working hours they create, we call for meaningful policy change from government.

I’m delighted by the UK government’s recent announcement that an additional half a million children will receive free school meals.

Bidfood and I have long campaigned for the expansion of healthy, free school meals, and I’m proud to see the collective efforts beginning to deliver real, positive change. This is a promising step towards the support we’ve all been hoping for.

It is also pleasing to see the School Food Standards is set to be updated to align to the latest guidance on nutrition, which along with our expert nutrition team, we will look to engage with the government on any changes that are implemented.

That said, while this news is both welcome and encouraging, it’s crucial that we now see a fundamental increase in funding to ensure the long-term sustainability of this vital service. I look forward to Bidfood continuing to be a strong voice in this important conversation.

Recently the government has proposed changes to the Soft Drinks Industry Levy (SDIL), which was originally implemented in 2018. These proposed changes include lowering the 5g sugar threshold and removing the exemption for milk-based drink and milk substitute drinks such as milkshakes and iced coffees.

The SDIL has achieved great success so far, with 46% of the sugar being removed by the drinks in scope already, and we hope that future changes to the levy will continue to incentivise industry and reduce sugar consumption further.

However, tackling obesity requires a multi-faceted approach. Whilst a sugar tax has been seen to be successful for soft drinks so far, it does not mean it would have the same success if applied to other food types. Like voluntary industry programmes, restrictions on less healthy foods and education for consumers may yield better results.

The Extended Producer Responsibility Legislation (EPR) has been introduced to hold producers responsible for paying the full cost of managing and recycling the packaging waste from their products. However, although the principles of EPR make sense, some of the practical applications are much less well thought through.

EPR has been years in planning, but even now we do not have confirmed rates that will be applied for the charges applicable to businesses for products that could be deemed relevant for street bin or house hold waste.

Businesses predominantly operating through B2B channels are expected to pay EPR fees on all products sold as it cannot be determined whether these are sold through B2B or B2C channels. However, this is likely to place an incorrect charge on B2B businesses, such as wholesalers, who may in turn be forced to increase prices.

It is disappointing that although we have raised these issues with DEFRA, they seemed uninterested, taking the view that these are minor issues in the context of the wider picture.

For more information on EPR, click here.

Following the disappointing Autumn Budget, Bidfood is very aware that pub operators are predicted to suffer. The National Insurance increase and lowering of the threshold will weigh heavily on many pub operators who rely on part-time staff. Increases to the minimum wage and removal of business rate support also put many small businesses at risk.

Pubs are the heartbeat of many communities, offering delicious food and drink while providing a place where people can come together, unwind and enjoy themselves. We know how important a good food offer is to our customers and the critical part it plays in helping them make a sustainable profit.

We absolutely support the call to government for swift and decisive reforms to employers NICs so we don’t lose these wonderful businesses.

In the wake of the recent protests, we sympathise with those farmers that have taken to the streets to express their concerns around the changes to inheritance tax. British farmers produce food to some of the highest standards across the world, but these changes suggest a lack of appreciation or understanding by government towards the farming process.

The illusion of generational farmers sitting on considerable wealth is in most cases inaccurate, with most annual incomes reflecting modest figures. It is likely that unless the Government reconsider their stance on the proposed changes to inheritance tax, many farming families will struggle to continue.

School meals is a topic area that has been highlighted by countless industry bodies whose voices continue to be either ignored or not understood. This has therefore result that unless urgent action is taken by the Government, the school meals service will be non-existent in some areas of the country and under severe threat of failure in most.

Our third annual paper highlights, in a non-political way and with absolute fact, the cause and effect of previous and current Government action, along with the key elements to review, acknowledge and take action on in order for the school meal provision to simply survive and reverse what could be the loss of a critical service being made available to all of our children in state education.

Host Olivia Jackson is joined by distinguished NHS guests Phil Shelley, Iain Robertson and Orlaith Curran, for an in-depth discussion on how the new UK government’s policies will shape the future of the National Health Service (NHS). Listen here.

Co-hosts Cally Ip and Gavin Squires are joined by industry greats Dr Andy Kemp MBE and Patricia Fellows MBE to breakdown the current scene of school catering and discuss the impact of politics on school meal funding. Listen to the podcast here.

30/10/24 – Following the announcement of the budget today, it’s hard to have a positive outlook. For the government to say “invest, invest, invest”, whilst costing businesses £25billion in NI changes is ludicrous.

Two thirds of our suppliers and customers are SME’s and many will struggle to survive these tax hikes on top of the minimum wage increase and employment rights bill.

It seems clear that the government either don’t understand or don’t care about business growth and the prosperity this brings to our country.