Fresh produce companies could prove vital in leading the country out of recession as the government leans on the private sector to plug the hole in the economy.
The government had a 0.8 per cent growth effect on GDP in 2009 but the spending cuts announced in the emergency Budget last week will see this slip to a likely 0.6 per cent.
As such, the private sector and in particularly manufacturing could prove vital in this, English Farming and Food Partnerships ceo Siôn Roberts told delegates at the body’s ‘Time to Invest?’ seminar at the Grocer’s Hall in London last week.
Roberts said the outlook for agri-business was good given that food manufacturing is the largest sector in the industry and that the current currency problems still hitting sterling will play in the favour of UK businesses long-term.
He also said a change in perception is needed: “Supply chain alignment is important - viewing yourself as part of a supply chain and not just up against your UK competitors. It is better to see yourself as better than a supply chain coming from Brazil or Scotland say. A lot of business are looking to the security of their supply chain and becoming more profitable long term.”
In reaction to the Budget, Nick Cartwright, corporate tax director at Smith & Williamson, said: “I believe the tax environment is benign and improving and I genuinely hope there will be a budget that will encourage investment and innovation. The government is taking a huge amount out of the economy and the impact remains to be seen.”
No comments yet