The release of the details of George Osborne’s first budget as Chancellor yesterday has seen a largely positive response, while acknowledging that tough times lie ahead.
“As expected, this budget has been tough, reflecting the current economic times. We welcome the Government’s commitment not to introduce VAT on food during its period in office,” said Jonathan Knight, Chief Executive of The Regional Food Group for Yorkshire and Humber. “Delaying the 2.5 percent VAT increase until January 2011 should encourage consumer sales momentum in the run up to Christmas, which will help the food and drink sector, especially independent retailers and producers.”
Knight’s sentiments were echoed by Melanie Leech, Director General of the Food and Drink Federation: “We recognize that this is a tough budget addressing serious issues. No one welcomes spending cuts or tax increases for their own sake. But we are relieved that the Chancellor has confirmed that most foods will continue to be zero rated for the life of this Parliament. We had argued against ending existing zero ratings as such a move would disproportionately impact the poorest in society, dampen consumer spending and fuel inflation – and are pleased that he has listened to our arguments."
REGIONAL BUSINESS SUPPORT
Despite cautious optimism from the industry, Knight called on the government to further explain its measures to protect regional business.
Knight said: “There has been no clarity on the specific support to businesses in the region, besides the creation of a Regional Growth Fund from 2011, and some loud hints that RDAs will need to transform into some form of Local Enterprise Partnerships in order to continue their business development functions - this detail is eagerly awaited.”
You can read the drinks industry response to the budget here.
Edited by Ellie Duncan
“As expected, this budget has been tough, reflecting the current economic times. We welcome the Government’s commitment not to introduce VAT on food during its period in office,” said Jonathan Knight, Chief Executive of The Regional Food Group for Yorkshire and Humber. “Delaying the 2.5 percent VAT increase until January 2011 should encourage consumer sales momentum in the run up to Christmas, which will help the food and drink sector, especially independent retailers and producers.”
Knight’s sentiments were echoed by Melanie Leech, Director General of the Food and Drink Federation: “We recognize that this is a tough budget addressing serious issues. No one welcomes spending cuts or tax increases for their own sake. But we are relieved that the Chancellor has confirmed that most foods will continue to be zero rated for the life of this Parliament. We had argued against ending existing zero ratings as such a move would disproportionately impact the poorest in society, dampen consumer spending and fuel inflation – and are pleased that he has listened to our arguments."
REGIONAL BUSINESS SUPPORT
Despite cautious optimism from the industry, Knight called on the government to further explain its measures to protect regional business.
Knight said: “There has been no clarity on the specific support to businesses in the region, besides the creation of a Regional Growth Fund from 2011, and some loud hints that RDAs will need to transform into some form of Local Enterprise Partnerships in order to continue their business development functions - this detail is eagerly awaited.”
You can read the drinks industry response to the budget here.
Edited by Ellie Duncan