Association News

Ben Cottam, FSB Head of External Affairs, said…

“We are pleased to hear the news that the Severn Bridge tolls will be scrapped at the end of 2018. The abolition of the Severn Bridge tolls has been a long-term campaign for FSB Wales and we are pleased to see that the UK Government has heard and acted on our representations.

 

“Before the General Election, we urged all parties to confirm when the tolls would be scrapped in order to provide certainties for business. Businesses will now be able to build in the removal of the tolls into their business planning as we know that for many businesses, this can be a financial hit and will be a disincentive to others.

 

“Many of our members will see this as providing for new opportunities to work cross-border and attract investment and talent from the South West. The business community with the City Region partners also need to consider how this move boosts opportunities to positively market the region as a place to start and grow a business as well as opportunities to boost tourism and leisure.

 

“The removal of the tolls is however only one of the measures needed to enable easy trade and movement for businesses. We now need to move to a resolution for congestion problems on the M4 including proper consideration of all the available options for improvements”.

Association News

EW Figures: British Consumers Buy Just Over Third The Veg They…

 

New data released today (20^th July) shows that UK consumers are buying two thirds less veg than the amount recommended by health experts. According to Government guidance on a healthy diet, 20% of our shopping should be made up of vegetables, but in reality we only reach 7.2%. Figures from the Institute for Health Metrics and Evaluation show that as many as 20,000 premature deaths annually in the UK could be avoided if we all ate more veg.

 

The analysis, released by The Food Foundation is based on data from consumer behaviour experts Kantar Worldpanel and shows notable regional variations, with English consumers buying the most veg (7.3%) and Scottish consumers the least (6.6%). Welsh shoppers beat their Scottish counterparts, but lag behind England, with 7.1% of their purchases being veg.

 

Food Foundation Director Anna Taylor says, “Education programmes designed to get people to eat more veg have had limited success. We need to change tack and look at all parts of the food supply chain and ask ourselves what more we can do to make it easier for consumers to eat more veg.

 

“Today we are publishing a new online guide, which is packed with practical ideas for retailers, big and small, to increase their fresh, frozen and tinned vegetable sales. International and domestic case studies in our guide show that a strong vegetable offer can boost profits, so we hope they’ll be interested.”

 

Practical tips used by successful retailers and flagged in the guide include measures such as mid aisle displays (which boosted sales of overlooked veg by 400% in Denmark), using floor stickers and marking space in trolleys for fruit and veg.

 

The guide is endorsed by British convenience store franchise group Simply Fresh, which is based in the Midlands and has 85 stores. Sukhjit Khera, Director of Simply Fresh said:  “Leading on vegetables, making them a prominent part of our displays and overall offer, has been key to our success. In our Alcester store alone, we were able to double turnover and increase our margin by 2% with the introduction of a more substantive vegetable offer, despite being surrounded by a number of the larger high street supermarkets.”

 

This is backed by the Association of Convenience Stores, who say that 49% of all convenience store shoppers consider healthy options as important.

 

James Lowman, Chief Executive of the Association of Convenience Stores agrees. “HIM research shows that only 23% of UK consumers think that their local convenience stores have enough healthy options but shoppers tell us that they would recommend stores to friends based on the quality of their fruit and veg. Providing a full range of fruit and veg not only helps consumers make healthy choices, but makes sound business sense.”

 

The move by the Food Foundation to help retailers improve their veg offer is part of the think tank’s Peas Please initiative. Peas Please is a ground breaking new initiative to address declining levels of veg consumption. It aims to bring together farmers, retailers, fast food and restaurant chains, caterers, processors and government departments with a common goal of making it easier for everyone to eat veg.

 

As part of the initiative, the Food Foundation will hold a Vegetable Summit which will take place in London, Cardiff and Glasgow on October 24th 2017.

Association News

UK Card Expenditure Statistics: May 2017…

 

A third of card payments are now contactless, up to 33 per cent from 18 per cent in May 2016;

 

A total of £4.5 billion was spent via contactless in May 2017, compared to £3.9 billion in April 2017;

 

The number of card payments continued to grow to 1.4 billion, an increase of 12 per cent over the past year, likely because of the increased use of contactless;

 

Card spending grew at an annual rate of 7 per cent in May 2017, the highest rate in 15 months, up from 6.5 per cent in April 2017, possibly due to rising inflation;

 

The strongest monthly increase in spending was recorded at pest control merchants, followed by chemists. Travel related merchants such as foreign exchange bureaus and airport terminals also recorded an increase;

 

The number of card purchases continued to grow faster than spending. The number of card payments grew by 12 per cent in the year to May 2016, the highest rate since June 2008, while online purchases increased by 19 per cent and contactless payments by 148 per cent.

 

Richard Koch, Head of Cards at UK Finance, said: “With one in three card payments now contactless, it is clear consumers value the speed and convenience of this way to pay. Card payments continue to grow at a faster pace than spending generally, a trend we predict is going to continue.”

Retail sector spending increased by £36 million from April, to £26.2 billion in May 2017, while food and drink sector spending rose by £34 million to £10 billion.

 

There was strong growth in spending at merchants providing pest control services, followed by chemists. Travel-related merchants, such as foreign currency exchange and airport terminals, also recorded strong growth.

 

The debit and credit card share of total retail sales was 77 per cent in May.

 

https://www.ukfinance.org.uk/wp-content/uploads/2017/07/UKF-CES-May-2017-Full-Report.pdf

Association News

The ALMR, BBPA and BHA gave evidence to the Low Pay Commission, outlining investment by businesses in staff members and sector job creation, but highlighting increasing costs that threaten to undermine further investment.

 

ALMR Chief Executive Kate Nicholls said: “The eating and drinking out sector is one that has been characterised by high levels of growth, strong community and high street investment and record job creation since 2010, with employment up 18% and 1 in 7 jobs created. However, that has slowed markedly over the last year to 18 months, partly as a result of economic and currency pressure but largely due to increased regulatory costs, such as business rates, which are in danger of becoming unsustainable in the current trading environment. The 2017 ALMR Christie & CO Benchmarking Report shows a drop in growth from 3.4% to 1.1% across the entire sector. At same time, wage costs have jumped by 12% and gross wage costs as a proportion of turnover now stand at 28%.

 

Eighty-five percent of businesses have found ways to absorb some of these increased costs, 40% of which have fully absorbed them, resulting in a drop in operating margin, but the sector is approaching a tipping point. Many businesses do not have a cushion against any significant increases and the LPC must understand that large increases in wage rates will threaten future employment and investment.”

 

 BBPA Chief Executive Brigid Simmonds said: “Given current economic uncertainties and the big increases in costs the industry is facing this year, we do need a cautious approach. The National Living Wage cost the industry around £34 million per year in 2016, with the increase to £7.50 this year adding a further £52 million – an average of around £1,600 for every pub. We are also facing significant new costs in other areas, such as the four per cent rise in beer duty in the Budget, auto enrolment pensions, business rates, and the apprenticeship levy.  The LPC does need to weight all these factors carefully when setting rates.”

 

Ufi Ibrahim, Chief Executive of the British Hospitality Association said: “The BHA urged the Commission to be cautious in setting rates for the National Minimum Wage from April 2018. As there is only one compulsory rate for all regions and nations of the UK, particular attention must be paid to those parts of the country which are struggling economically.

 

“Whilst the cost pressures on businesses have been well documented there are real risks to revenue from a weakening in corporate and consumer confidence. It is important that the industry’s growth – especially in employment – is maintained through a responsible NMW settlement.”

 

For more information visit www.almr.org.uk.

Association News

Making Tax Digital was announced by then-Chancellor George Osborne in the 2015 Autumn Statement. Its aim was to digitise the tax system with the self-employed, small businesses and unincorporated landlords needing to keep digital records and use software to update HMRC quarterly.

 

Whilst a number of business organisations were supportive of plans to simplify tax and bring it into the 21st century many expressed reservations about certain aspects of the proposals. These included the thresholds for unincorporated businesses; the workability of the software and IT systems; and the availability of financial and educational support. However, MTD proposals were delayed by the election – as the Government had to drop them from the Finance Bill in order for it to be passed before Parliament was dissolved.

 

With the plans having faced criticism from MPs, the Treasury Select Committee, business and professional bodies (including the National Landlords Association and the FSB), the Government announced a U-turn on the 13th July on the extent of the Making Tax Digital requirements, which has generally been welcomed.

 

Commenting on the Government’s decision, Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA), said: “We are pleased that the Government has finally listened to the concerns raised by the NLA on behalf of landlords who would have been dragged into a system of tax reporting rushed into being before they or it are ready.

 

“While we have always supported simplifying the tax system, we were concerned by the issues raised by the Making Tax Digital programme, and welcome the changes announced by the new Financial Secretary to the Treasury Mel Stride MP, as they address exactly the points we’ve highlighted since the initial announcement.

 

“However, rather than being evidence that the Government is willing to work with the industry, this has come about because they no longer have the majority to push through such controversial plans”.

 

The Treasury announced that the current threshold for Mandatory Quarterly Tax reporting would be increased to the VAT threshold of £85,000, meaning the exemption of the smallest firms. Responding, Mike Cherry, Chairman of the Federation of Small Businesses, described the changes as a “real lifeline for small firms already facing a hugely challenging economic climate”.

 

The government’s decision to make adoption of Making Tax Digital (MTD) voluntary for the UK’s smallest businesses means that there will be a lot of accountants and small business owners out there breathing a huge sigh of relief. Tax consultant Andrew Hubbard said, “It became increasingly obvious that the proposed timetable was unrealistic. In the end, HMRC had little choice to postpone given the level of pressure they were under from the Treasury Select Committee and the accountancy bodies, not to mention the genuine alarm being expressed by affected businesses.”

Association News

Independent Brewers: Consumers Deserve to Know Who’s Behind ‘Craft’ Beer

 

 The Society of Independent Brewers (SIBA) have highlighted the need for greater clarity for beer drinkers following a number of buyouts of previously independent craft breweries in the UK by global beer companies, including Camden Town, Meantime, Sharp’s, and most recently London Fields brewery.

 

The London Fields brand and site was recently purchased by Carlsberg. Mike Benner, SIBA Chief Executive, commented, “Buyouts such as that of London Fields by global beer company Carlsberg are made in the hope of capturing the original customers and target market of an established, previously independent craft beer brewery – Customer bases which were built on the back of the brewery being relatively small, independent and brewing quality, flavoursome beer. Consumers deserve to know that what they are buying is a genuine craft-brewed beer as research* clearly shows that most beer drinkers believe craft beer to be produced by relatively small, independent brewers.”

 

“SIBA want to see far greater clarity in the market place and as such launched the Assured Independent British Craft Brewer campaign, whereby truly independent craft breweries and the beers they brew, can carry a seal highlighting them as such. It’s a simple accreditation which can be instantly recognised by beer drinkers on bottles or cans on supermarket shelves or on pump clips at the bar.”

 

The campaign will also be a major feature of the Great British Beer Festival in London this summer where all of the beers from independent breweries will be highlighted on bar banners and in the festival programme. The festival attracts over 50,000 people across the four day event and is run by not-for-profit consumer organisation the Campaign for Real Ale (CAMRA).

 

SIBA’s South East Regional Director Ed Mason, who also runs Five Points Brewing Co in London, also commented, “London’s thriving independent craft beer scene has been built on the passion, investment, sweat and tears of genuine independent brewers and we know that beer drinkers care about the provenance of their beer. The purchase of the ‘London Fields’ brand by Carlsberg raises a number of questions about genuine independence and ethics in the brewing industry. SIBA’s AIBCB ‘Assured Independent Brewers’ seal will help ensure that customers can tell which beers are truly independent”.

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