Third lockdown could be the end for many food manufacturers says BFFF

London, UK: The reimposition of lockdown measures could be the final ‘nail in the coffin’ of many food manufacturers supplying the out-of-home market, says Richard Harrow, chief executive, British Frozen Food Federation.
 
The federation says that with the reimposition of severe lockdown measures, these businesses need long-term government support in the form of business rate relief and more flexibility about paying National Insurance and VAT payments to HMRC.
 
Harrow said: “The third English national lockdown, plus restrictions in the UK’s other nations, will be devastating for our members supplying the out of home market and they are facing a bleak winter.
 
“When similar measures were introduced in April of last year, members supplying the out of home market, reported drops in turnover of more than 70%. Back then they had some cash reserves to fall back on, but these have now been spent.
 
“I have written to the Environment Secretary George Eustace, explaining many of the ‘squeezed middle’ are often successful family-owned SMEs, supplying the hospitality and foodservice sectors, and are now facing collapse. Support for this important sector is vital to ensure they continue to manufacture and supply world leading products, making the market so dynamic and vibrant. Their continued existence will be critical as the economy starts to recover.”
 
“Those businesses in the ‘squeezed middle’ have not been given the same level of Government assistance as the businesses they supply, despite being as hard hit by the restrictions.
 
“The government needs to ensure that targeted support is provided to ensure these companies survive the winter and are able to bounce back, when the economy starts to recover with the roll out of vaccination.”