Economics bulletin 06 January

Date : 05 January 2023

Your overview of economic and policy news with a focus on the food and consumer goods industry. Featuring the latest developments and guidance on the rising cost of living, the Ukraine crisis, labour shortages, COVID-19 and adapting to a new relationship with the EU.

Predictions for 2023

2023 is set to be another challenging year for the food and consumer goods industry, dominated by recession, inflation, the conflict in Ukraine and consumers cutting back on spending.

As you plan ahead for the year, join our Viewpoint webinar on 26th January – From inflation to recession: what to watch out for in 2023, in which we will share our predictions for what’s in-store for the economy, consumer sentiment and government policy for the food and consumer goods industry. We will also summarise possible implications for your business.

To register please click here.

Energy bill relief scheme

The Government is expected to set out the future of the Energy Bill Relief Scheme next week. The current scheme, providing relief on energy bills for businesses, voluntary sector and public sector organisations including charities and schools is due to expire on 31 March 2023.

The Treasury stated “that any future support, while at a lower level, would be designed to help them [businesses] transition to the new higher price environment and avoid a cliff edge in support”

Shopper confidence increases over Christmas

IGD’s Shopper Confidence index has risen to -21 compared to -25 last month. This is the highest level since July 2022 with consumers enjoying their first Christmas without COVID-19 restrictions since 2019

ShopperVista subscribers can read the full report here.

Energy bills expected to fall

Independent analysts have forecast that falling wholesale energy prices will mean that annual average household energy bills are set to fall to £2,800 in the second half of 2023 from a government cap of £3,000 from April.

New fishing deal

The Government has reached a new agreement with the EU on fishing quotas for 2023. The UK fishing industry can benefit from 140,000 tonnes of fishing opportunities across 69 important fish stocks.

Extended producer responsibility

DEFRA has launched an online tool to help businesses understand whether they are obligated to report data under extended producer responsibility.

Environmental land management scheme payments

The Government will increase payments made to farmers through the Sustainable Farming Incentive (SFI) and Countryside Stewardship (CS) agreements as part of a review into the wider Environmental Land Management Scheme.

Farmers could receive up to a further £1,000 a year on the first 50 hectares of land through the SFI and a 10% uplift in payment rates for farmers with CS agreements.


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