Help for Households? Chancellor to meet with food manufacturers

  • The Chancellor will meet with food manufacturers on Tuesday to discuss the cost of food and explore ways to ease pressure on households
  • He is also due to meet the Competition and Markets Authority about their investigations into the fuel and grocery markets
  • Government will look at reforms around unit pricing, to make it easier for consumers to compare the prices for similar products

The Chancellor will meet with food manufacturers today (Tuesday 23 May) to raise concerns about the high price of food in the UK and discuss measures the government can take with industry to ease the pressure on households.

Building on engagement between the Chief Secretary to the Treasury and the UK’s biggest supermarkets earlier this month, the Chancellor will ask food manufacturers to do what they can to support consumers.

As crucial players in the supply chain to supermarkets, this follow up meeting with food manufacturers will help ministers better understand the challenges firms are grappling with as inflated prices continue to plague the economy. The food and drink manufacturing sector is the largest in the UK, accounting for nearly 20% of total UK manufacturing and employing almost half a million people across the country.

On the same day, the Chancellor will meet with the independent Competitions and Markets Authority (CMA) to discuss the scope of their investigations into road fuel and groceries markets, including the possible action they could take if they are dissatisfied with the level of competition in the sector which could be allowing higher prices to prevail.

The government wants it to be easier for consumers to compare the prices of products, and the CMA is currently reviewing the use of unit pricing both in-store and online in the groceries sector. The government will consider updating pricing rules, including by strengthening the Price Marking Order 2004 (Retained EU Law), after the CMA review has concluded.

While rising food prices in the UK are in line with the EU average and headline inflation fell by 0.3 per cent last month, food inflation grew to 19.2 per cent. Food inflation disproportionately affects low-income households, who spend more of their income on food and are less able to swap what they would usually buy for cheaper alternatives.

Chancellor of the Exchequer, Jeremy Hunt, said: “High food prices are proving stubborn so we need to understand what’s driving that.

“That’s why I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.”

Chief Executive of the Food and Drink Federation, Karen Betts said: “We are looking forward to discussing the multiple drivers of food price inflation with the Chancellor, which have caused the fastest acceleration of food prices in a generation.

“Despite manufacturers’ best efforts in recent months to absorb rising costs in their margins, these have been both persistent and broad-based – from ingredients to energy and labour – making price rises unavoidable.

“We believe food and drink price inflation is close to its peak, and food and drink manufacturers will continue to work hard to keep prices as low as possible, conscious of the pressure on hard-pressed households.

“Government can help too, for example by urgently reviewing upcoming packaging recycling regulations to make them more efficient, by working with us to address labour and skills shortages, and by keeping to a minimum the labelling changes required of companies as a result of the recent agreement with the EU on the movement of food and drink to Northern Ireland.”

The government says it has acted decisively to help struggling households with rising prices, pledging to halve inflation this year and taking action to bring down bills for families. This includes introducing the Energy Profits Levy on oil and gas companies to pay almost half of a typical household’s energy bills, freezing fuel duty and taking difficult decisions on government spending to make sure we do not fuel inflation further.

One of the most generous support packages in Europe has also been rolled out, worth £3,300 per household on average over this year and last. Benefits and state pensions have been increased by over 10 per cent, up to £1,350 in direct cash payments are being made to millions of vulnerable households and record uplifts in the National Living Wage mean someone who is currently out of work and takes a full-time job will be over £7,500 better off.

Extra support has been put in place to help the most vulnerable with high food prices, including the £2.5 billion Household Support Fund which provides local authorities with money to support their communities with the cost of essentials, the £200 million Holiday Activities and Food Programme which supports children on Free School Meals with a nutritious meal during the holidays and an expansion of Free School Meals to all 5-7 year-olds.

The Prime Minister and Farming Secretary brought together representatives from across the UK food supply chain last week, where they outlined a range of measures to help strengthen the long-term resilience and sustainability of the sector and put farmers at the heart of plans to grow the economy.

Cooking up a storm!

Gordon Ramsay to open new restaurant at St James Quarter

Gordon Ramsay Street Burger will be opening its first Scottish based restaurant in a flagship location at St James Quarter

St James Quarter confirms another meaty arrival with Gordon Ramsay Street Burger set to open its first restaurant in Scotland.

Gordon Ramsay Street Burger will open within the Ribbon building at levels 4 and 5 of St James Quarter, opposite the Everyman Cinema which opens its doors in April this year.

The Gordon Ramsay team will elevate its concept for the Edinburgh branch, bringing a games lounge, DJ booth and stunning interiors designed by internationally acclaimed Russell Sage Studio.

The news follows the recent announcement of the March opening of Ka Pao, an East Asian restaurant from Glasgow that was presented a Bib Gourmand by the Michelin guide, a prize awarded to outlets offering exceptional quality cuisine at accessible prices.

Nick Peel, Managing Director at St James Quarter, commented: “It’s been a big week for St James Quarter with a number of iconic brands confirmed to be joining the family.

“We are delighted that Gordon Ramsay has chosen a flagship space within The Quarter for Street Burger’s Scottish debut. Edinburgh is clearly a city close to his heart and we think our guests will be wowed by what he and his team have got planned for the space.”

St James Quarter has gone from strength to strength since opening in June 2021, and offers an impressive and growing list of names at the retail led destination, which includes & Other Stories, Mango, Zara, REISS, Bershka, Pull & Bear, Stradivarius, Miele, Next, H&M, JD Sports, John Lewis and many more.

BOGOF! Consumers warn government off meddling with food and drink promotions

A survey by BritainThinks, commissioned by the Food and Drink Federation (FDF), has found that 73% of in-store shoppers say they usually or always purchase products that are on promotion when shopping, with a quarter (25%) of respondents suggesting that if there were no promotions, they would be concerned about the affordability of their shopping.

Nearly two thirds of participants (62%) also agreed that promotions are an important way to save money on food and drink, with nearly three quarters of participants (72%) wanting promotions to continue, finding them useful for saving money, stock up on food for the future and trying new products.

The findings come following news that the government remains committed to plans that would restrict promotions, including multibuys and buy-one-get-one-free deals.

Commenting on the findings, the FDF’s Chief Scientific Officer, Kate Halliwell, said: “The survey results clearly demonstrate that a large majority of in-store shoppers use promotions as a way to save money on their food and drink shopping. We’re extremely concerned that removing these promotions will add to the household’s food bill.

“There is evidence that during a recession, many people increasingly rely on promotions to help them save money. It’s predicted that the average shopping basket may increase by £600 a year without promotions in retail. We have already seen evidence of rising food costs – at the start of lockdown we saw a spike of 2.4% increase in food prices, fuelled by a 15% fall in promotions which accounted for over half of this inflationary spike.

“We urge the Government to consider these findings as they press on with their plans to restrict retail promotions and think about the impact this may have on the shopping basket and for shoppers during an incredibly difficult economic time.”

Food and Drink industry concerns over advertising ban

I wanted to share with you a letter, written from the Food and Drink Federation (FDF), as well as UK Hospitality and the Advertising Association, to the Prime Minister highlighting our concerns regarding the proposed online advertising ban consultation, announced last week.

It is co-signed by a number of our leading companies and household brands, but we are really concerned about the large numbers of small local businesses that form the backbone of our industry who will be damaged or even put out of business by this proposal.

From a local businesses’ perspective, the currently proposed advertising bans, especially online, will have large impacts on what can and cannot be advertised to a local community.

For example, under the suggested bans, it could mean that local wedding cake businesses would not be able to advertise their creations or market their products on social media platforms such as Instagram due to be classified as a product ‘high in sugar, fat and salt’.

It could also restrict or ban the promotion of a charity bake sale on a local online forum, a local butcher may not be able to promote its finest bacon and a baker would not be able to share their latest creations such as Bakewell Tarts, Cornish pasties, Scotch Eggs or Welsh Cakes.

For a newer business, which we know are already facing enormous pressure in the current climate, it may limit their ability to promote newer products. How can they raise awareness of the company or their products to consumers if they cannot promote it using advertising mechanisms?

Those signing the letter represent more than 800 food and drink manufacturers and 3,000 leading UK brands. The food and drink industry alone is the largest manufacturing sector in the UK, worth more than £28bn to the economy, employing almost 500,000 people.

Please find our letter attached in full (see below).

Best wishes,

Rachel Bickerstaffe

Corporate Affairs Administrator
Food and Drink Federation

Food businesses urged to play their part in improving the health of local communities

A new nationwide challenge is looking for food businesses to make their recipes healthier and improve dietary health in local communities across Scotland.  

The challenge – Reformul8 – run by Food and Drink Federation (FDF) Scotland, in partnership with Scotland’s 32 local authorities, is open to all small to medium sized food companies. This includes food and ingredient manufacturers, butchers, bakers, cafés and takeaways.

The businesses that take part in the challenge will receive free support to help them select a range of products to focus on and the best ways to make these healthier. This could mean increasing fibre, fruit and vegetables within foods.

Alternatively, labelling could be used to recommend cooking techniques, portion size and serving suggestions. Or fat, salt or sugars, overall calories or portion sizes could be reduced. A simple change could even be to replace a key ingredient with a healthier alternative.

Throughout the coronavirus outbreak, Scottish food businesses have worked incredibly hard to feed and to support their local communities. Now is an excellent time to promote the great work they are doing.

Each business taking part in the challenge will benefit from a range of media support from FDF Scotland to celebrate their achievements in making their products healthier and ultimately improving the health of their consumers. 

Joanne Burns, Reformulation for Health Manager, FDF Scotland, said: “Health is increasingly being seen by consumers as a key reason for choosing to buy certain food products. We recently carried out research where we found that 89% of Scottish consumers have at least one health goal and are actively seeking healthier food.

“I would encourage food businesses to get involved to support your consumers to improve their dietary health. I would also ask members of the public to promote this challenge to your local food heroes.

“Now is a great time for businesses to get in touch so you can start to look at your recipes ahead of the new year when your consumers will be even more focused on eating more healthily.”  

If food businesses are interested in finding out more please email:

reformulation@fdfscotland.org.uk