UK BUDGET – KEY POINTS

National Insurance Increases:

In October’s budget, chancellor Rachel Reeves announced an increase in the rate of

employer Class 1 NICs from 13.8% to 15%. The government also reduced the per-employee

threshold at which employers become liable to pay National Insurance from £9,100 to

£5,000 a year. UKHospitality has said the increase will amount to a 10% increase in the cost of employing a worker, amounting to at least £2,500 per employee. These latest tax hikes

are expected to hit hospitality and retail disproportionately, with leaders in both industries warning they will have wide-ranging impacts.

Labour costs and National Minimum Wage Increases:

The National Minimum Wage (NMW) is set to increase to £12.21 per hour for adults over 21.

The 6.7% rise will come into effect in April 2025. Higher labour costs will lead to increases in

both production and distribution costs, subsequently reflected in food product price tags. A gradual rise in food prices can therefore be expected, as businesses adjust to higher wage

expenses.

Business rates relief for retail, hospitality and foodservice sectors:

On a more positive note, the budget provides a 40% relief on business rates for the retail, hospitality and foodservice sectors for the fiscal year 2025-26. It is capped at £110,000 per business, with the relief expected to provide temporary financial respite for foodservice businesses. The business rates relief could indirectly help stabilise food prices, particularly in the restaurant and hospitality sector, offering a short-term cushion that may help some foodservice businesses to temporarily weather rising costs.

COMMODITIES REPORT

Fruit & Vegetables:

The storms and flooding in Spain have had a serious impact on fruit and vegetables.

Thousands of hectares of fruit and vegetables have been destroyed by flash floods

in the Spanish region of Valencia. Our suppliers are working with their growers to

understand the impact and offer any practical support they can. Not only has the rain

damaged crops but also infrastructure, putting additional pressure on transport of

goods. Categories affected by the extreme weather include brassica, citrus, lettuce

and salad.

Citrus Fruits:

Growers in Valencia were unable to access orchards, so very little fruit has been picked and despatched. This will impact oranges, lemons and easy peelers in particular.

Tomatoes:

There continues to be limited availability from mainland Spain, with growers running up to a fortnight behind schedule. We are working with our suppliers to cover the Spanish shortages. It is, however, very challenging and the market is extremely tight. We expect it to be another week or so before we see it stabilise.

Seasonal Recipe Suggestion

English Parsnips have arrived and are great value. Here is a delicious recipe to add to your

repertoire and make the most of autumnal vegetables:

Crispy Spiced Parsnip Chips

Perfect as a side or starter

Serves 4

Ingredients:

a few tbsp sunflower oil

100g seasoned plain flour

2 eggs

70g Parmesan, grated

70g breadcrumbs

3 tsp ground cumin

½-¾ tsp cayenne, depending on how spicy you like things

400g parsnips (about 4 small or 2 large), peeled

salt and pepper

Method:

Step 1

Preheat oven to 200°C/Gas 6. Pour a generous layer of oil into a large baking tray and put to heat in the oven.

Step 2

Prepare the crisp coating by placing the seasoned flour in a large clean plastic bag. Beat the eggs in a large, wide bowl. In another bowl, combine Parmesan, breadcrumbs, cumin and cayenne. Add some salt and pepper. Turn out crumbs onto a large plate or tray. Cut the parsnips into batons a couple of centimetres thick - aim for the look of large chips.

Step 3

Put the parsnip batons in the flour, hold the bag closed, and shake. The parsnips will be coated in a thin layer of flour. Pick out the floured parsnips, and using a fork, roll in the egg to coat. Then lift the parsnips out of the egg and roll each piece in the breadcrumb mix.

Step 4

Once all the parsnips are ready, place them carefully in a single layer on the hot oiled oven tray, turn gently to coat in oil all over and roast for 25-30 minutes until parsnips are soft and the crumb coating is crisp and golden. Turn out onto kitchen paper, then serve.