Due to the global recession, the state of which is not expected to improve until late 2010 at the earliest, the Food and Drink Federation (FDF) have informed the government of a number of ways they could help the food industry.
The FDF, in association with the British Plastics Federation, the Manufacturing Technologies Association and manufacturers' organisation EEF, sent a detailed letter to the Chancellor ahead of the upcoming pre-budget report, outlining strategies which could be implemented, including:
• A freeze in the rate of corporation tax for small food companies until 2011
• A delay to the introduction of new business-limiting regulations
• A 12 month extension to 40% first-year capital allowances
• Finally, an initiation of dialogue between EU authorities in order to extend the Letter of Credit Guarantee scheme, which is in place for developed economies
In the letter, the FDF also stressed that the food and drink manufacturing industry, with a gross turnover of £72.6 billion, is the largest sector in the UK at present, and that these measures are essential to not only help struggling businesses to survive and continue to support a balanced economy, but would also mean greater financial security for the 440,000 British people in food jobs throughout the UK.
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