Foreign Secretary Liz Truss speaks during the second Conservative party membership hustings on August 01, 2022 in Exeter, England. (Photo by Finnbarr Webster/Getty Images)
The frontrunner to become British prime minister, Liz Truss, said she would scrap plans to restrict multi-buy deals on food and drink high in fat, salt, or sugar and would not impose any new levies on unhealthy food.
Britain already taxes sugar in soft drinks, and in May delayed until October next year rules banning deals such "buy one get one free" on food and drink high in fat, salt or sugar due to the cost-of-living crisis.
"Those taxes are over," Truss said in an interview with the Daily Mail. "Talking about whether or not somebody should buy a two-for-one offer? No. There is definitely enough of that."
Truss said Britons wanted the government to focus on things like delivering good transport links, communications infrastructure and cutting NHS waiting lists.
"They don’t want the government telling them what to eat," she said.
The ban was also due to include restrictions on free refills for soft drinks in restaurants. Limits on the location of unhealthy foods in shops are still due to go ahead in October.
Opinion polls of Conservative Party members, who will elect their new leader and the country's next prime minister, show Truss is leading her rival former chancellor Rishi Sunak ahead of a result due on Sept. 5.
The government has today published draft legislation to, for the first time, permanently cut business rates for retail, hospitality, and leisure properties from 2026.
The move marks the beginning of the delivery of the government’s promise to reform business rates, will benefits high streets across the UK, the government added.
The tax cut will be funded by a tax rise for the very largest business properties, such as online sales warehouses.
Until then, 250,000 retail, hospitality, and leisure (RHL) properties will receive 40 per cent relief off their business rates bills up to £110,000 per business to help smooth the transition to the new system.
This support is alongside the budget announcement to freeze the small business multiplier, together with Small Business Rates Relief protecting over a million properties from inflationary increases. Taken together, this is a package worth over £1.6 billion in 2025-26.
“For too long the business rates system has been working against our high streets. Today is a major step towards our new system that will support retail, hospitality, and leisure businesses on our high streets to succeed,” James Murray, exchequer secretary to the treasury, said.
“This bill paves the way for a permanent cut to their tax rate, helping to level the playing field between them and online and out-of-town businesses.”
The government has also introduced legislation to increase the Employment Allowance – a discount in National Insurance bills – from £5000 to £10,500, meaning 865,000 employers will not pay employer national insurance next year, and 250,000 employers will pay less National Insurance than they are now.
The government said the measure will allow firms to employ up to four National Living Wage workers full time without paying employer National Insurance on their wages.
The eligibility of the allowance will also be expanded to include all eligible employers, rather than just those with a wage bill of less that £100,000 a year.
“We are pleased to see James Murray and the whole Treasury team take this important step forward today – legislating for the significant increase to the Employment Allowance which FSB strongly championed, to protect smaller businesses with employment costs. But also taking a decisive step forward on business rates reform,” Craig Beaumont, Federation of Small Businesses executive director, said.
“For far too long, permanent business rates reform has been put into the too difficult box. It is extremely encouraging on rates to see ministers standing up for small firms in retail and hospitality and taking long-term action necessary to the future of our high streets – we look forward to continuing to work in partnership with the new government to make sure no small businesses whatsoever are blocked from achieving their ambitions by a rates system that has not simply not kept pace with the needs of a modern economy.”
To calculate a property’s business rates bill, the rateable value of a property is multiplied by the relevant multiplier (tax rate). Today’s Non-Domestic Rating (Multipliers and Private Schools) Bill means that new permanently lower multipliers for RHL properties can be introduced from 2026.
The new RHL tax rates will be funded by a higher tax rate for the top 1 per cent most valuable properties – those with a rateable value of at least £500,000. Large distribution warehouses, including those used by online giants, will help fund the high street tax cut, the government said.
A discussion paper has also been published to engage with businesses over the next six months on how to further reform the system outside of retail, hospitality and leisure.
North East Lincolnshire Council Trading Standards team have seized over £100,000 of illicit tobacco products during operations throughout Stoptober, the council stated on Wednesday (13).
The team and partner organisations such as Humberside Police uncovered 28,120 cigarettes, 12.45 kilos of tobacco and 3133 illegal disposable vapes in a number of shops during the four week operation. The products have an estimated value of over £100,000.
Shops and businesses on Freeman Street, Cromwell Road, Yarborough Road, and Second Avenue on the Nunsthorpe estate were all visited. The raids were part of Operation CeCe, an ongoing intelligence-led operation, targeting counterfeit and illicit cigarettes, tobacco and illegal disposable vape dealers.
Since January 2021, North East Lincolnshire Council Trading Standards team have seized 84,957 packs of cigarettes, 10,750 pouches of tobacco and over 17,000 illegal vapes, with a combined value of almost £1.8 million, all money which would have gone out of the local economy and into the hands of organised crime gangs.
Humberside Police’s Neighbourhood Policing Inspector for Grimsby West Claire Jacobs said: “We deployed our teams in support of North East Lincolnshire Council during this important operation to combat illicit cigarettes and tobacco within North East Lincolnshire.
“We continue our commitment through the Clear Hold Build initiative to ensuring that Grimsby remains a fantastic place, and working closely with partners on operations such as this one helps us to do exactly that.”
By law, Vapes should have an internal tank capacity of no more than 2ml, and the level of nicotine contained in the vaping fluid should not exceed 20mg/ml (or 2 per cent). As with tobacco products, these items are required to display certain health warnings and every such device, and the liquid it contains, should be registered with the MHRA (Medicines and Health care products Regulatory Agency) prior to being released onto the market.
Councillor Ron Shepherd, portfolio holder for safer and stronger communities, said: “This joint operation shows just how important it is to work together. Multi-agency operations such as these are keeping these products, that do not meet safety standards and are putting lives at risk, off the streets. We know illicit and fake cigarettes do not comply with the Reduced Ignition Propensity requirements and won’t self-extinguish, so are likely to start a fire.
“When you buy these products, you could be putting your own health at risk. Not only has no duty been paid on them but they’ve not been tested to ensure they’re safe. It is important to remember that whilst legitimate disposable vaping bars can be a very useful aid to smokers who are wanting to quit, they still have potential health issues as a result of use, and should never be purchased and used by non-smokers”.
Speaking about quitting smoking, Cllr Stan Shreeve, NELC Portfolio holder for Heath, Wellbeing and Adult Social Care, said: “I urge smokers in our region to use the support services on offer to help them to quit smoking.
“We have so many examples of people turning their lives around completely after quitting smoking with support from the Wellbeing Team, and you only have to look at the figures released today to see what a positive impact that could have for everyone.”
Britain's Premier Foods reported a 4.6 per cent rise in half-year revenue, driven by continued growth in its grocery business and brands such as Mr Kipling, Nissin and The Spice Tailor, shows the results reported today (14).
As UK inflation eased during the first half of the year, consumers who had been cautious about non-essential spending began to loosen their purse strings. That bodes well for food manufacturers who aggressively hiked prices at the peak of a cost of living crisis over the past few years.
Pricing on average is lower than last year, CEO Alex Whitehouse said in a media call, adding that the lower pricing has led to strong volume growth for the group's grocery and sweet treats businesses.As spending trends change and in the lead up to the key Christmas season, some food manufacturers are offering temporary discounts to attract more customers.
Premier Foods said it was on track to meet full year expectations but does not give actual figures. Analysts expect revenue of 1.15 billion pounds and adjusted pre-tax profit of 161.9 million pounds for the year ending March 30, according to a company-compiled consensus.
However, volume trends are expected to normalise and per unit prices are expected to be flat compared to a year ago, rather than lower, Whitehouse said.
Premier, which makes products ranging from plain flour to cooking sauces and quick meals, reported headline revenue of 498.7 million pounds for the 26 weeks ended Sept. 30, up from 476.7 million pounds a year earlier.
Whitehouse said, “We’ve delivered another really strong branded performance in the first half, underpinned by double-digit volume growth.
"This demonstrates the success of our proven branded growth model which was also supported by sharper promotional pricing. We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands from own label. Our innovation programme continues apace as we brought many new products to market in the period, including Sharwood’s curry kits, Mr Kipling Loaf cakes and Loyd Grossman Pesto.”
“As inflation has begun to ease and shoppers are starting to feel more confident, we’ve seen consumers treat themselves more, helping sales of both Mr Kipling Signature Bites and Ambrosia Deluxe more than double in the first half of the year. We’ve continued to make very good progress against all the pillars of our growth strategy.
"We accelerated capital investment in our supply chain, continuing to invest in projects to improve automation and increase efficiency, in addition to enabling growth through new product development. Angel Delight ice cream and Ambrosia porridge pots contributed to strong progress in our new categories, which grew 67 per cent, while the international business performed very well, with revenue up 31 per cent.
"We continue to be very pleased by the progress of our acquired brands, The Spice Tailor and FUEL10K and we now have the biggest selling granola product on the market.
“As we look to the second half, we have exciting plans in place across all our brands, with our best ever Mr Kipling Signature mince pies benefitting from expanded distribution. With this, and our continued branded momentum, we are on track to deliver on expectations for the full year. As we look further ahead, we expect revenue growth to continue to be generated from our strategic priorities of growing our UK branded core, extending into new categories, overseas expansion and M&A activity.”
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Eco Vape partners Aspire to launch new hybrid vape product with 3500 puffs
Eco Vape partners Aspire to launch new hybrid vape product with 3500 puffs
Over a third of UK of vapers will defy any new flavour restrictions brought in under the Tobacco and Vapes Bill, a poll by campaign group We Vape has found.
Commissioned after the bill's first reading in parliament, the poll showed 35 per cent of a 601-strong sample group of vapers across the UK would continue to buy flavoured vapes online, abroad or elsewhere if flavours were limited to only "tobacco", "menthol", and "fruit'.
With 5.6million vapers in the UK, that equates to nearly two million of them (1.96million) buying unregulated products if flavours are restricted.
Research has shown flavours are a significant draw for smokers looking to switch to vaping, an accepted safer way to use nicotine.
And while moves to ban flavour names specifically aimed at children – like candy floss and bubble gum – are widely welcomed, campaigners warned excessive restrictions would drive people back to cigarettes.
"Our polling shows millions of vapers are just going to ignore any measures that prevent them from accessing the flavours that help them quit smoking," said We Vape founder Mark Oates.
"If a certain vape flavour stops a person lighting up, it should be protected. Naming products in a way that clearly appeals to children, like bubblegum, must of course be banned, but there are many flavours that attract smokers looking to make the switch away from the tastes and smells associated with smoking.
"Appealing flavours must be protected to ensure we don't see a mass migration from vaping back to combustible tobacco, which is a death sentence for most users."
The poll, carried out by researchers from Britain in Focus, also showed a quarter of UK vapers would be much less likely to vote Labour if the Government restricts vape flavours.
It means 1.4million of the 5.6million vapers in the country will be lost potential voters for the party, already embattled over a tax-ramping budget and declining voter support.
Results showed that 23.3 per cent would be "much less likely" to vote Labour, while 4.5 per cent said they would be "somewhat less likely" if done as part of the new Tobacco and Vapes Bill.
Mr Oates said: "The vape vote is becoming increasingly important due to the sheer numbers of smokers who have switched to this effective harm reduction tool.
"Keir Starmer is garnering a reputation for not listening to the public. If this continues with vaping the stats are clear – it will cost him at the polls."
Worryingly, poll results also showed one fifth (20 per cent) of vapers will likely go back to smoking after any flavours ban – slightly lower than the government's own impact report.
Asked how likely they would be to return to cigarettes in the next 12 months if the Government were to restrict vape flavours, 11.5 per cent said they would be “highly likely” to go back to smoking while a further 10 per cent said they would be “quite likely”.
This could mean around 1.1 million vapers returning to cigarettes.
Of further concern, 4.8 per cent of vapers – which would equate to around 270,000 people – even stated they would make their own to circumvent any restrictions and save money after the e-liquid tax hike of £2.20 per 10ml of e-liquid.
Mr Oates said: "This government must understand smoking is most prevalent in low income households and communities.
"Keir Starmer has already announced the vape liquid tax will be increased, almost quadrupling its price, which lessens the appeal of making the switch from smoking.
"Our research now shows some people feel so strongly about further restrictions they would consider making their own vapes.
“Removing a product does not remove its demand and with so many people prepared to use illicit products, the government must protect crucial flavours or face the uphill struggle of trying to uphold laws that are impossible to enforce.”
The We Vape poll results should also worry Trading Standards, who will be tasked with enforcing the disposable vapes ban from June next year and tackling a street black market predicted to skyrocket when the new laws are introduced.
The government's disposables ban has been at the centre of some controversy, with its own impact assessment concluding it would likely lead to “health disbenefits.” It stated “29 per cent of current [vapers] will either revert/re-lapse to smoking tobacco” leading to a rise in “the sale of tobacco goods”.
In some good news for the Government however, the We Vape poll showed an overwhelming majority of the country backed a retail vaping licence – with 80 per cent supporting the move that is intended to help crack down on vapes being sold to children.
In a sample of 2400 people across the UK, 85 per cent also supported the introduction of premarket testing, to help keep illicit products off the shelves.
Shoppers are saving on grocery essentials to be able to afford treats and indulgences during Christmas while the festive time is expected to see a boost in sales of premium private label food and drink as more people "dine at home" , shows recent industry data.
According to total till data from NIQ, sales growth in UK stores stores slowed to 4.0 per cent in the four weeks ending 2nd November, down from a 4.7 per cent rise in the previous month. The research firm suggested that this is likely due to shoppers holding back their spending in anticipation of Black Friday at the end of the month and the upcoming Christmas festivities.
Despite easing inflation, shoppers were still cautious with their grocery shop, with spend per visit down 6 per cent on last year at £18.67. They also remained savvy with how they spend, with sales of items on promotion increasing from 24 per cent to 25 per cent. NIQ noted that 36 per cent of branded sales came from promotions – up from 35 per cent a year ago – with brands heavily reliant on deals to deliver volume growth.
Meanwhile, confectionery (+10.5 per cent) was the fastest-growing category last month as shoppers stocked up on sweets for Halloween and Christmas. However, shoppers reigned in on essentials with subdued value growth in the packaged grocery category (+1.7 per cent) and a decline in unit growth (-0.8 per cent).
Moreover, despite an increased level of promotions, shoppers cut back on purchasing beer, wine and spirits with a unit sales decline of 0.4 per cent – a sign that shoppers are holding back until nearer the festivities. NIQ pointed to a recent Homescan survey showing that price reductions and promotions are almost expected by consumers ahead of Christmas. The most popular are retailer vouchers with money off (24 per cent, up from 17 per cent last year) and product promotions (35 per cent, up from 29 per cent last year), which are the key factors considered by shoppers when choosing their Christmas store.
The data also shows that the cautious consumer sentiment has put pressure on general merchandise sales in supermarkets, with value down 1.4 per cent and volumes falling 5.5 per cent.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said, “Total Till sales over the last four weeks have slowed, with shoppers pulling back their spend. Shoppers so far have been cautious, and it’s evident that they are saving on grocery essentials to be able to afford treats and indulgences.
“However, the start of the Christmas advertising campaigns is an opportunity for brands and retailers to entice consumers and showcase what’s new and what’s different. And given that it’s possible that many shoppers will ‘dine at home’ more in the next few weeks, we expect this to boost sales in premium private label food and drink, which NIQ expects to do very well this Christmas.”