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Morning Briefing for pub, restaurant and food wervice operators

Thu 15th Jul 2021 - Salt and sugar tax proposal, pubs’ recovery threatened
Sugar and salt tax for sector businesses proposed as part of national strategy: A sugar and salt tax for hospitality businesses is being proposed in the second part of the National Food Strategy that calls on the government to commit to an historic package of reforms in order to build a better food system for a healthier nation. It is one of the recommendations in a landmark report by food entrepreneur Henry Dimbleby, co-founder of natural food brand Leon. He said the government should introduce a £3 per kilogram tax on sugar and a £6 per kilogram tax on salt sold wholesale for use in processed foods, or in restaurants and catering businesses. Dimbleby said it would create an incentive for manufacturers to reduce the levels of sugar and salt in their products, by reformulating their recipes or reducing their portion sizes. The sugar and salt tax could raise £2.9bn to £3.4bn per year for the Treasury, some of which would be used to expand free school meals and support the diets of those living in the most deprived neighbourhoods. As part of the 14 recommendations, Dimbleby has also proposed introducing mandatory reporting for large food companies. The report recommended the introduction of a statutory duty for all food companies – including those in hospitality – with more than 250 employees to publish an annual report on their sales of various food types, including fruit, vegetables, different types of protein and products high in fat, sugar or salt. The independent report, commissioned by the government in 2019, also calls for food education to be central to the national curriculum, and for food standards to be protected in any new trade deals. The report sets out how our diets will need to change over the next ten years in order to meet the government’s existing targets on health, climate and nature. By 2032, fruit and vegetable consumption will have to increase by 30%, and fibre consumption by 50%, while consumption of food high in saturated fat, salt and sugar will have to go down by 25%, and meat consumption should reduce by 30%. Backers of the report include chef and campaigner Jamie Oliver, Michelin-starred chef Tom Kerridge and Thomasina Miers, co-founder of Mexican restaurant chain Wahaca. UKHospitality chief executive Kate Nicholls said: “The National Food Strategy represents an opportunity to identify and tackle the challenges facing hospitality, as well as wider society and the world. As a battered and debt-ridden hospitality sector navigates its way out of the pandemic crisis, the recommendations for equipping our future workforce are very positive elements of the findings. The report’s measures to improve healthy eating are, essentially, a continuation of the successful efforts of hospitality venues over recent years. We are hopeful, though, any such initiatives are taken at a pace that recognises the dire state of the sector as it looks to recover from the covid crisis, but with appropriate consultation, so we can best achieve lasting improvements collaboratively and without damaging recovery.” Environment secretary George Eustace said: “We will carefully consider the report’s conclusions and respond with a white paper within six months, setting out our priorities for the food system.”

BII – huge debts, rising costs and staffing shortages threaten recovery of UK pubs: The British Institute of Innkeeping (BII) has said huge debts, rising costs and staffing shortages threaten the recovery of UK pubs as they emerge from government restrictions. The BII’s latest survey of its operator members not only showed the impact of the pandemic but what support is needed from the government to safeguard their futures. The survey revealed 55% of respondents have accrued pandemic-specific debts of more than £20,000 per site, with more than one in four having debts of up to £80,000. Some 57% will need more than two years to pay back their debts while half of those need more than five years. Staffing remains a huge challenge for pubs with almost one in two struggling to recruit the staff they need. Additionally, 72% of operators need to raise wages for front-of-house staff with 40% of those having to increase wages by more than 10% to attract and retain staff. Similarly, 57% have had to raise wages for back-of-house staff, with 48% of those having to increase wages by more than 10%. A rise in the cost of food has been witnessed by 43%, and 41% have seen drink prices go up. BII chief executive Steven Alton said: “The resilience, goodwill and determination of our nations’ pubs has been incredible to witness over the course of the pandemic. However, this alone will now not be enough to ensure their businesses survive. The threat is very real as confirmed in The Bank of England’s latest Financial Stability Report, released this week, which points to the particular vulnerability of small hospitality businesses as the economy emerges from covid-19 restrictions. These small businesses are essential and valued hubs of their communities, providing accessible, social spaces for everyone to come together to connect, celebrate and commiserate. They urgently need support from government in the form of an extension of the business rates holiday to April 2022 for England to match the devolved nations, an extended VAT reduction, an immediate cut to duty on draught products, specifically for pubs and an urgent reform of the entire rates system.”

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