Autumn Statement welcomed by food and drink firms

The FSB welcomed a series of proposals in Osborne’s Autumn Statement, designed to ease pressure on small to medium-sized businesses (SMEs), through greater credit easing and increased access to finance.

The government’s decision to cancel January’s planned 3p rise in fuel duty, in favour of an increase limited at 2p in August, was also welcomed by the FSB, along with the move to tackle rising overheads.

Andrew Cave, chief spokesman for the FSB told FoodManufacture.co.uk: “In light of the dreadful forecast, I think he did as much as he could for us with the very limited room for manoeuvre available to him.​

“We are pleased he is seeking to tackle a number of issues voiced by small businesses and we see this as a step in the right direction.​”

Pro-business​

Food and drink firms echoed the FSB’s positive response, predicting that the government’s proposals will enable them to expand and create jobs.

The Food and Drink Federation described Osborne’s plans as “pro-business, with a clear focus on growth​”.

Terry Jones, Terry Jones, FDF director of communications, said: “SMEs have repeatedly highlighted their concerns about accessing finance and we are pleased to hear the proposals for credit easing that should enable many of our small businesses to expand, pursue new export markets and create jobs.​

“The move to remove much unnecessary red tape is likely to be welcomed by the industry and we await details of where this will apply.​”

Food firms have been particularly concerned about increasing burden of regulation on Employment, according to Jones. “So plans to exempt small employers could potentially give them confidence to consider creating new jobs​,” he added.

In his Autumn statement, the chancellor confirmed a new credit easing programme, which will underwrite up to £40bn in low-interest loans for SMEs.

Competition​

Osborne also announced an initial £1bn would be made available through a Business Finance Partnership which will invest in SMEs through non-bank channels.

This will give start-up firms and fledgling businesses the chance to potentially by-pass the high street banks and find alternative sources of finance, according to the FSB.

Despite this, the FSB is concerned that guaranteeing loans from existing high street banks may serve to reinforce their position and prevent competition in the market.

Cave said: “We welcome it but it could still have a limited impact as it is may not lead to additional funds being made available. But rather function to serve the very banks that have been proven to fail in this area in the past.”​

We don’t want it to act as a barrier for new entrants to the market place, which we are very keen to see.​”

Based on Septembers inflation figures many firms have seen a 10% increase in their business rates over the last two years, according to the FSB.

The FSB has therefore welcomed the government’s plans to tackle firms' rising overheads.

John Walker, national chairman of the FSB, said: “Targeting the rising cost of overheads is imperative to help firms weather the economic storm that could be heading our way, so measures to limit the rise in fuel prices and business rates are very welcome​.”

Chilled Food Association director, Kaarin Goodburn described the fuel duty cancellation as “positive​”, previously fearing that manufacturers were being “squeezed​” due to government bias toward retail.