News article

8 July 2020

Food and Drink Federation response to the Chancellor's Summer Economic Update

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The Food and Drink Federation has released the following statement in response to the Chancellor's Summer Economic Update.

Commenting on the update, FDF's Chief Executive, Ian Wright CBE, said:

"The FDF is extremely appreciative of the unprecedented support the UK Government and the devolved administrations have provided throughout this crisis. Up and down the country, the 'Hidden Heroes' of the UK's food and drink industry have kept the nation fed through the last few difficult months.

"The UK's food and drink manufacturers who supply into the hospitality and catering trade have been hard hit by the crisis, as their customers disappeared overnight. These 'squeezed middle' firms will enthusiastically welcome the Chancellor's announcement today to cut VAT on food and hospitality and slash the cost of eating out. We hope these measures will lead to a significant boost in demand for the hundreds of manufacturers who supply into hospitality and the out of home sectors and help them to manage increased supply costs.

"However, if demand does not return quickly, these firms will continue to struggle unless they - and the sector they supply - receive additional employment support. The Chancellor must therefore keep the option of extending full furlough support to hospitality and their food and drink suppliers in his back pocket so we do not lose vital jobs and businesses.

"The closure of hospitality has disproportionately affected young people's employment prospects. We applaud today's interventions to increase employment opportunities for young people who would otherwise be hit hardest by unemployment. The FDF is pleased that government heeded our call to introduce cash incentives for employers taking on new apprentices. We would now welcome the opportunity to work with government to ensure food and drink manufacturers can make the most of the schemes announced, as our industry offers great careers, in every constituency."

More Information

Contact Meg Bevan, Corporate Affairs Division, at:, or 07946 340 998.

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