Fuel duty and foodservice: the impact of the Chancellor’s Spring Statement
Since it was delivered in the Houses of Parliament on Wednesday 23 March, the Chancellor’s Spring Statement has received significant comment.
As food procurement experts, allmanhall have been considering it from a foodservice perspective. A number of the factors increasing the cost of living that affects us all in a personal capacity also impact the foodservice sector.
Whilst news of the Chancellor’s cut to Fuel Duty by 5p a litre will be welcomed by many, it has been questioned as to whether it goes far enough?
All users of fuel, including those in the foodservice supply chain, have recently experienced significant increases, far outweighing this 5p cut. The price of wholesale diesel has increased by 17p since the start of 2022, whilst the price at the pump has increased by over 30p, as shown in the graph below.
In place for 12 months, it remains to be seen whether a 5p fuel tax cut will have any material impact on the total cost increases that are currently being experienced by foodservice suppliers.
Will this gesture by the Chancellor go some way towards helping prevent cost increases and inflation we’re seeing through the food supply chain? It seems unlikely.
For more insight regarding factors affecting food costs, take a look here:
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