"Peas Please", an initiative led by The Food Foundation with partners Nourish Scotland, Food Sense Wales, Nourish NI and Food NI, has found that the amount of vegetables being bought by households in the UK has fallen to its lowest level in 50 years. The analysis of Defra data, conducted for the 2023 Peas Please Progress report, published today, shows that the cost-of-living crisis continues to impact on diets with the lowest income households struggling to afford healthier options.
Defra’s Family Food Survey captures purchases of food by UK households from both retail and the Out of Home sector and includes vegetables in composite foods as well as those bought whole. Although vegetable purchases have been fairly stagnant for the past thirty years, purchases of vegetables dropped to their lowest level in fifty years in 2021-2022 (from 182g per person per day in 2020-21 to 154g in 2021-22), suggesting that the cost of living crisis is having a profound impact on household purchasing habits and dietary health.
Source: Adjusted National Food Survey data 1974–2000, Expenditure and Food Survey 2001-2002 to 2007 and Living Costs and Food Survey 2008 onwards, Family Food Survey 2022. Around 5,000 households in the UK are surveyed annually.
To be in line with the Eatwell Guide, the Government’s recommended guideline for a healthy diet, 20 per cent of diets should be made up of vegetables. Separately, The Food Foundation’s analysis of Kantar data provided annually to the programme reveals that not only does the volume share of vegetables purchased from retailers fall far below this, the figure is also moving in the wrong direction. The weight of the average shopping basket that is composed of vegetables has fallen from 7.2 per cent to 6.8 per cent over the past six years.
The proportion of shopping baskets containing veg over the course of the Peas Please programme (Kantar data provided to the Peas Please initiative)
Inequality in vegetable consumption continues to be a serious concern, with veg consumption following a strong income gradient even before the cost of living crisis. The Kantar basket data for the 2022-23 reporting year shows that on average, for those earning less than £10,000 a year, just 5.9 per cent of their shopping basket consisted of veg compared to 8.2 per cent for those earning over £70,000 a year.
Vegetables are the golden thread connecting diets that are both healthier and more sustainable, and there would be huge benefits for our health, the environment, and the UK’s economy if we were all able to hit the recommendations for vegetable consumption.
Transitioning UK diets towards more sustainable and healthy dietary patterns should be firmly on the political and corporate agenda as we get closer to the UN’s 2030 Sustainability Development Goals with vegetables playing an important role in supporting both human and planetary health.
The Peas Please project launched in 2017 with a clear mission to make it easier for everyone in the UK to eat more veg. Since then, 110 organisations, from restaurant chains, caterers and manufacturers to growers and retailers, have committed to veg pledges that support the public to be able to access more veg. Pledges have included everything from boosting the amount of veg contained in ready meals to serving more veg options on children’s menus. The project has led to an additional 1.1 billion additional portions of veg being sold or served.
“The Peas Please programme has shown just how much can be achieved by creating a diverse community of supporters working together to champion food system change – in this case making it easier for everyone to eat more veg," said Rebecca Tobi, Senior Business and Investor Manager, The Food Foundation. Although our report shows that those businesses who have supported the programme have achieved a huge amount – selling an additional 1.1 billion portions of veg – there is still much more that needs to be done for the UK to become a veg eating nation. With some 17 million households living with food poverty, many are likely to be cutting back on healthier foods such as fruit and vegetables given that these are a more expensive source of calories in comparison to other food groups. We urgently need to see businesses stepping up to make eating veg the easy and affordable option, and more support from the Government to ensure that everyone is able to access and afford a healthy diet”
Retailers are right to warn of potential job cuts as a result of tax increases announced at last month’s budget, Bank of England governor Andrew Bailey has said.
Bailey appeared before the cross-party Treasury select committee on Tuesday (19), after almost 80 retailers claimed rising costs would make “job losses inevitable, and higher prices a certainty”.
“I think there is a risk here that the reduction in employment could be more. Yes, I think that’s a risk,” Bailey said, adding that depending on how companies respond, there could be a bigger reduction in employment as a result of the NICs rise than the 50,000 jobs projected by the government’s spending watchdog, the Office for Budget Responsibility (OBR).
Bailey suggested the Bank’s monetary policy committee (MPC) would continue to reduce interest rates slowly from their current level of 4.75%, allowing time to assess the impact of the tax changes.
Rachel Reeves’s first budget increased taxes by £40bn, which Labour said would be used to fund creaking public services. The biggest revenue-raiser was a £25bn rise in employer national insurance contributions (NICs), which has prompted a backlash from business groups.
In a letter to the chancellor, retail bosses claimed this and other changes would cost the sector £7bn and lead to layoffs. Signatories included senior figures from Tesco, Greggs, H&M, B&Q and Specsavers.
The letter, which was organised by the British Retail Consortium (BRC) and signed by 80 companies, warned the industry faces £7bn in increased costs as a result of changes to employers’ National Insurance, a higher minimum wage rise and levies on packaging.
It added that job losses were now “inevitable”, as a result of the “sheer scale” of the new costs on business.
The letter continued: “For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale. The effect will be to increase inflation, slow pay growth, cause shop closures and reduce jobs, especially at the entry level. This will impact high streets and customers right across the country.”
The BRC estimates that retailers will face a £2.3bn bill from April, after the implementation of the increase in employer NICs from 13.8 per cent to 15 per cent, as well as the reduction in the earnings threshold when they must start paying it, from £9,100 to £5,000.
Meanwhile, retailers are understood to have been contacted by the Treasury last week to find out whether they planned on giving their support to the letter, which criticised the Chancellor’s decision to impose extra costs on the industry. One industry source suggested the Government had been thrown into a “tizzy” by the prospect of a public letter rebuking the Chancellor.
The British Independent Retailers Association (Bira) has urged independent shop owners to reach out to their local councils about the government's newly announced High Street Rental Auction (HSRA) powers, which aim to tackle persistently vacant commercial properties on UK high streets.
Introduced through the Levelling Up and Regeneration Act 2023, the HSRA legislation will come into force on 2 December. It will give local authorities the ability to put the leases of long-term empty shops up for public auction, allowing businesses and community groups to secure short-term tenancies.
Andrew Goodacre, CEO of Bira, said: "The introduction of High Street Rental Auctions is a positive step forward in revitalising our town and city centres. For far too long, disengaged landlords have been allowed to leave key commercial properties sitting vacant, to the detriment of local businesses and communities."
"We urge all independent shop owners who have experienced issues with persistently empty premises in their area to engage with their local council. These new rental a provides an opportunity for retailers and other organisations to gain access to high street spaces that may have previously been off-limits."
The government has committed over £1 million in funding to support the HSRA process, which aims to breathe new life into town centres by bringing businesses, community services and customers back to the high street.
Goodacre added: "High streets are the beating heart of our local communities, and we cannot allow them to wither away due to landlord inaction. These new rental auction powers give opportunities to established or new retailers to secure affordable, short-term tenancies and expand their reach within their community."
Britain's annual inflation rate jumped more than expected in October to back above the Bank of England's target as households and businesses faced higher energy bills, official data showed Wednesday.
The Consumer Prices Index reached 2.3 per cent from a three-year low of 1.7 percent in the 12 months to September, the Office for National Statistics said in a statement.
CPI was last at 2.3 percent in April, the ONS added in a statement, while analysts' consensus had been for the rate to climb back to 2.2 percent.
The Bank of England (BoE) target stands at 2.0 percent.
"Inflation rose... as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year," ONS chief economist Grant Fitzner said of October's data.
Britain's energy regulator Ofgem sets a price cap quarterly that suppliers can charge customers. The latest increase in October was 10 per cent but this is expected to drop markedly in January according to forecasts.
The regulator had cited rising prices on international energy markets owing to increasing geopolitical tensions, and extreme weather events driving competition for gas, as the reasons behind the sharp rise.
"We know that families across Britain are still struggling with the cost of living," senior Treasury official Darren Jones said in reaction to Wednesday's inflation reading and saying the Labour government needed to do more to help.
Food and non-alcoholic beverage prices rose by 1.9 per cent in the year to October, up from 1.8 per cent to September 2024. The annual rate of 1.9 per cent in October compares with 10.1 per cent in the same month last year.
Analysts said despite prices rising faster than expected, the BoE remained on course to keep cutting British interest rates.
"But it lends some support... that the Bank will skip the December meeting and cut rates only gradually, by 25 basis points in February and at every other policy meeting until rates reach 3.50 percent in early 2026," forecast Ruth Gregory, deputy chief UK economist at Capital Economics research group.
The central bank earlier this month trimmed borrowing costs by 25 basis points to 4.75 per cent.
Following its decision, the BoE added that a maiden budget from Britain's Labour government in October, featuring tax rises and increased borrowing, would boost growth but also lift inflation.
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Nestle logos are pictured in the supermarket of Nestle headquarters in Vevey, Switzerland, February 13, 2020
Nestle on Tuesday said it will increase investment in advertising and marketing to 9 per cent of sales by the end of 2025. The company also announced plans to make its waters and premium beverages activities a global standalone business from New Year.
Unveiling a plan to fuel and accelerate growth at a Capital Markets Day for investors and analysts, the Swiss group also said it aims cost savings of at least CHF 2.5 billion (£2.25bn) above existing initiatives by end 2027 to fund increased investments.
“Our iconic brands and innovative products connect with people every day, at every stage of their lives. These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and our customers,” Laurent Freixe, Nestlé chief executive, commented.
“Our action plan will also improve the way we operate, making us more efficient, responsive and agile. I am confident that we can deliver superior, sustainable and profitable growth and gain market share, while transforming Nestlé for long-term success.”
Nestlé confirmed its 2024 guidance, with organic sales growth of around 2 per cent, underlying trading operating profit margin of around 17 per cent and underlying EPS broadly flat in constant currency. Looking ahead to 2025, the company expects an improvement in organic sales growth compared to 2024, with the underlying trading operating profit margin anticipated to be moderately lower than the 2024 guidance.
Nestle last month lowered its outlook for 2024 to 2 per cent as the company reported falling sales for the first nine months of the year.
The consumer goods major, whose brands range from Nespresso coffee capsules to Purina dog food and Haagen-Dazs ice cream, had already cut its annual sales growth expectations from 4 per cent to 3 per cent in July.
The company on Tuesday said it expects organic growth to be over 4 per cent in the medium term, in a normal operating environment, with an underlying trading operating profit margin of over 17 per cent.
Nestle said the its new action plan will allow it to drive category growth and improve market share performance.
Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive greater impact, and systematically addressing underperformers.
Nestle will step up investment in advertising and marketing to support growth. The necessary resources will be generated through cost savings and growth leverage.
As part of the action plan to drive operational performance, Nestle’s water and premium beverages activities will become a global standalone business under the leadership of Muriel Lienau, head of Nestlé Waters Europe, as of January 1, 2025.
Nestle said the new management will evaluate the strategy for this business, including partnership opportunities.
A single UK-wide scheme deposit return scheme (DRS) would be far more successful, efficient and effective, retailer body the Federation of Independent Retailers (the Fed) has stated, expressing surprise and some concerns over Welsh government’s decision to press ahead with its own deposit return scheme for bottles and cans and not to join a UK-wide DRS.
The Fed’s National President Mo Razzaq has further warned that this decision by Wales - coupled with its intention to include glass in its scheme - would cause unnecessary confusion. He commented: “While we applaud Wales’s desire to make its deposit return scheme a success, we would prefer to see one single scheme for the UK.
“Interoperability across the UK is vital, so that anyone buying a drinks can in England will have the confidence that they can return it in Wales.”
Razzaq added, “A single UK-wide scheme would be far more successful, efficient and effective, enabling shoppers to understand and embrace DRS as quickly as possible.”
In a written statement yesterday, the Welsh government confirmed that it “was not able to proceed with the joint process.
It had always maintained that glass would be part of its deposit return scheme. Earlier this month, the UK government confirmed that it would not include glass in the scheme.
Deputy First Minister Huw Irranca-Davies, who has responsibility for climate change, confirmed Wales’s deposit return scheme “supports the transition to reuse for all drinks containers including those made from glass.”
Through DRS, consumers will pay an additional 20p when they purchase a drink in a single-use container. This is redeemed when they take the container back to a return point operator.
Razzaq added: “The Fed has always been very supportive of a UK-wide DRS as we believe it has huge potential to boost recycling and curb litter – two issues that impact on the environment and people’s quality of life.”
Welsh member Vince Malone added: “This is a concerning development, as Fed members believe a Welsh DRS scheme can only work effectively if it has a UK scale and is aligned with the rest of the country.”
According to Keep Britain Tidy’s National Litter Survey, by volume, drinks containers make up 75 per cent of the litter found on streets. Estimates suggest that more than eight billion drinks containers are wasted across the UK each year.