FWD urges future PM to tackle inflation in sector

Finance

The Federation of Wholesale Distributors (FWD) has urged the incoming prime minister to take immediate action to address inflation, boost the economy and support the food distribution network.

Addressing the two remaining candidates for PM, the FWD wrote to Rishi Sunak and Liz Truss explaining its members had been disproportionately affected by the pandemic, labour shortages and the Ukraine war.

The manifesto has called for cutting fuel duty, returning to a 12.5% VAT rate for the hospitality businesses and implementing a moratorium on existing policies that are driving up inflation.

READ MORE: FDF urges Sunak to increase support amid cost of living crisis

According to the FWD, cutting fuel duty would be one of the most effective ways of reducing food price inflation as increased distribution costs had knock-on effects throughout the supply chain and resulted in higher prices for consumers.

Referencing upcming schemes such as HFSS and DRS, the FWD said the increased costs on the sector would be unwelcoming in the current inflationary trading environment.

Additionally, the federation called for greater allocation of funds for public sector food budgets as well as a re-examination of post-Brexit labour planning.

“Ensuring a robust, safe, varied and competitive food distribution network has to be among the new prime minister’s first priorities,” FWD CEO James Bielby said.

“Costs are going to continue rising, and be passed on to the public, unless the government intervenes immediately. Our manifesto proposes several actions that would limit those rises, keep prices affordable in shops, restaurants and public sector contracts.”

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