I have today written to the Chancellor on behalf of food and drink wholesalers in Carshalton and Wallington to raise their concerns about ongoing financial assistance.
The Federation of Wholesale Distributors has contacted me to highlight their recent survey of members, which found that:
- Their members are experiencing up to a 70 per cent reduction in sales volume despite the re-opening of the hospitality industry and the Eat Out to Help Out scheme. The 10pm curfew on the hospitality industry will cause an even bigger reduction in sales volume.
- 90 per cent of their surveyed members will be making large-scale redundancies by the end of the year, which will fundamentally impact the food supply chain. As you will know, there are nearly 600 businesses in the food and drink wholesale sector employing 68,000 people. As well as the financial threat of COVID-19, they are concerned that their members will be facing even bigger operational and consequently financial challenges preparing for the end of the Brexit transition period, potential tax increases and any additional lockdowns such as the 10pm curfew.
- Almost 60 per cent of wholesalers, which supply to critical public sector infrastructure such as schools, care homes and hospitals are at risk of collapse by the end of the year. Nearly all of these businesses have a turnover of £45 million or lower.
- Millions of pounds worth of stock not sold due to a loss in customers is close-to or has passed its best before date and will be wasted leading to further financial problems for their members.
I have set these concerns out to the Chancellor, and asked him to consider extending Business Rate Relief to the wholesale sector. You can find a copy of my letter below, and I will update when I receive a response.
