Robert Urquhart’s Post

The UK Budget for 2024 has stirred significant conversation, particularly regarding its impact on food security and food prices. Oliver Hall, allmanhall’s Managing Director, explores key aspects of the budget and their potential implications on food prices, supply chains, and food security in the coming years. Learn more, below... https://lnkd.in/evMrmXj4

Yesterdays budget announcements are a further kick in the teeth for the Beers Wines and Spirits, and Hospitality industries. Two industries which have already been hit with years of dismissiveness and cut backs. - An increase for landlords and bar owners in employment costs. - An increase in taxation on non-draught alcohol (sorry wines) - Hitting farmers harder with inheritance problems, resulting in the descions of whether it’s viable to keep it going and family run (sorry all wheat, barley, malt, hops) This labour government had the potential to really offset the problems arisen through Brexit which impacted on the drinks industry. Unfortunately, it looks as though, no matter who is in government the UK Farming, Hospitality, and Alcohol industries are always going to be either forgotten or looked down upon.

In a recent update, Wine & Spirit Trade Association CEO Miles Beale shares his optimism about engaging with the new Labour government following their decisive election victory. Here's a brief rundown: 🔹 Election Surprise: The Labour Party's large majority signals significant changes ahead. 🔹 Key Concerns: The WSTA is prioritising the new alcohol taxation regime and the urgent need to make the wine duty easement permanent by February 1. 🔹 Strategic Engagement: While initial responses may be delayed due to governmental adjustments, the WSTA is gearing up for discussions post-summer recess. 🔹 Positive Outlook: Early signs are promising with Labour's focus on economic growth and partnership with businesses. 🔹 Environmental Goals: The industry will play a crucial role in shaping Extended Producer Responsibility and Deposit Return Schemes, aiming for a balanced approach that fosters growth and sustainability. See below to read Beale's Soapbox for Harpers: https://lnkd.in/ecF9Sddy #WineIndustry #SpiritTrade #EconomicGrowth #Sustainability #GovernmentPartnership #WSTA #LabourGovernment

What autumn budget changes will be most important for the grocery sector? Here’s what big industry names had to say ahead of today’s budget announcement… 💰 Business rates: “The Chancellor must share the burden of taxes and new costs fairly, and recognise the vital role that local shops play in more communities than any other physical business, right across the country.” (James Lowman, Chief Executive of the Association of Convenience Stores) 🤝 Employment rights: “When we look at the workers’ rights that have been proposed by the government, we’re actually encouraged to see a number of things that we’ve been doing for some time being put on a statutory footing.” (Shirine Khoury-Haq, Chief Executive of Co-Op) 👨🌾 Farming: “I am hopeful that the government will act on its promises to tackle supply chain unfairness and address the huge imbalance of power between supermarkets and farmers.” (Guy Singh-Watson, Founder of Riverford Organic) 📃 National insurance: “When I hear about plans to increase National Insurance, I’m concerned. The Chancellor was right in the past to call National Insurance a tax on workers – it makes it more difficult to offer the life changing opportunity of a job.” (Stuart Machin, Chief Executive of M&S) 📈 Interest rates: “We need to see interest rates continue to come down because that directly impacts household spending. I think clarity in the Budget, one way or another, is helpful.” (Simon Roberts, Chief Executive of Sainsbury’s) 🍷 Wine duty: “We want to support the Chancellor achieve her economic growth plans. By cutting duty, introducing cellar door relief, and reforming small producer relief, she can accelerate our growth.” (Nicola Bates, CEO of WineGB) 🍟 Obesity and unhealthy diets: “We would welcome a raft of different reforms to incentivise healthier diets. A tax that is well thought out that looks at HFSS foods is a lever which the government could use, but it comes with the strong caveat that taxation alone doesn’t shift behaviour.” (Lauren Woodley, Group Nutrition Leader for Nomad Foods) See what other industry leaders had to say about hoped-for reforms for the sector: https://lnkd.in/eziPu4VF Are there any other changes you’d like to see announced today? #Grocery #Budget #AGNews 

🍷 Countdown to the Labour Budget: What It Could Mean for Wine & Spirits With the Labour Budget just weeks away, the future of the UK wine and spirits industry is on my mind. 🛑Maintain the Wine Easement: Without this, small and medium-sized businesses (SMEs) could face chaos starting in February 2025. Keeping this easement is essential to avoid additional costs and disruptions. 🛑Freeze alcohol duty for at least 2 years: This would not only support businesses and consumers but also help the government boost revenues. 🛑Remove Duty Stamps: With modern digital compliance systems, these have become costly and unnecessary. 💬 I’d love to hear your thoughts below! #WineAndSpirits #UKBudget2024 #BusinessSupport #AlcoholDuty

Can someone from the British Retail Confederation (#BRC) tell us what the current impact of long-term sickness absenteeism has on their costs / profitability? Has anyone from BRC made a projection of the longer term cost impact that ill-health and a constrained skills / points based immigration policy will have on their business over the next 10 years? I hear a lot af complaints and protests from BRC members regarding the measures taken in the recent budget. I do understand their argument that reducing costs on businesses can stimulate growth and increase tax revenues which will fund the necessary public spending requirements. But history has demonstrated that quite often the additional tax revenues promised do not come and if they do come, tax cuts are often prioritised over public sector spending. Is it not the case that we need these cycles of labour and conservative governments to redress the neglect that each party exhibits towards certain segments during their respective terms?

Attention Food Led Businesses! Did you know that a reduction in the VAT rate to 9% could mean a whopping €37k in savings? This is the only show in town when it comes to supporting restaurant businesses. While a reduction in employers PRSI may have a minimal impact, providing only around €5k in savings on a €1m turnover (for example, a 20 staff restaurant), it is still a welcome help. However, if you want to see real savings, it's time to advocate for that reduction in the VAT rate. Let's work together to support the growth of food led businesses in our community! #FoodLedBusinesses #VATreduction #PRSIreduction #SupportSmallBusinesses #VAT9 #hospitalityireland #restaurantindustry #cateringindustry

🚨 Irish food businesses are facing tough times as industry profit margins fall below 1%, putting them in 'survival mode'. A recent report highlights the challenges of rising operational costs and government pressure. #IrishFoodIndustry #BusinessChallenges

The numbers don’t lie. And they’re certainly eye-opening. 🧐 Food-led businesses are walking a tightrope with razor-thin #profit margins. In our latest data-driven industry report, we’ve uncovered harsh truths 👇 ▪️Q1 2024: The average net profit margin for restaurants in our study was a mere 0.8%. ▪️End of 2023: Margins plummeted into negative territory (-1.6%) 🛑 Major Concerns: ▪️High operational costs such as #payroll and #energy ▪️High #VAT rate For both hospitality business operators and decision-makers, this is a wake-up call. Fortunately, there are strategies you can use to navigate these challenges more easily. Grab the full “Irish Food-Led Businesses By The Numbers 2024” report to understand the entire picture and read our top tips to ride the storm. Download it here for free 👉 https://hubs.la/Q02GynLk0 In collab with our friends at Restaurants Association of Ireland #FreeReport #IrishBusinesses #HospitalityIndustry #IrishRestaurants

📉 Hospitality Costs On the Rise 📈 As of August 2024, the results from a recent survey conducted by the British Beer and Pub Association, British Institute of Innkeeping, Hospitality Ulster, and UKHospitality paint a troubling picture for the hospitality sector. Almost every business in the industry is grappling with steep increases in wages and food costs, driven by the latest surge in inflation. According to the survey, a staggering 95% of hospitality businesses have seen their wage costs go up, with similar trends observed in food (89%), insurance (84%), and energy (57%) costs. The increasing costs are pushing many hospitality businesses to the edge. Industry leaders are calling for reforms, particularly around business rates, and are advocating for VAT and alcohol duty reductions to ease the burden. The collective voice of the sector's trade bodies is clear: if the Government doesn't swiftly act on its manifesto promises to alleviate high street business pressures, the future of many establishments could be in jeopardy. Michael Kill, CEO of the Night Time Industries Association, has also highlighted the potential impact of upcoming tax rises in the Autumn Budget. With the inflation rate inching from 2% to 2.2% last month, the already fragile hospitality sector could face further challenges if additional tax burdens are introduced. The Autumn Budget must consider the sector's fragility and continue providing much-needed support during this critical recovery phase. #HospitalitySector #InflationImpact #Budget2024