Interest rates were the main topic of conversation in the business pages yesterday, followng the widely anticipated news that they would be held at 4.5%. According to the BBC, The Bank of England warned that economic and global trade uncertainty has “intensified”, with US trade tariffs creating additional uncertainty across both the UK and Europe.
The Financial Times also attributed some of the uncertainty to next week’s spring statement from Chancellor Rachel Reeves, when she is expected to announce the biggest UK spending cuts since austerity.
Despite the difficult backdrop, governor Andrew Bailey said interest rates would go down eventually, although he warned investors against assuming they would be cut quickly, describing them instead as being “on a gradually declining path”.
Business rates were a hot topic in the House of Lords earlier this week, with members voting on whether the Chancellor’s business rates reforms should also apply to flagship stores such as Marks & Spencer and John Lewis. Peers were told the decline of the high street posed a threat to ‘social cohesion’.
This is Money reported that the house voted to set aside the government’s business rates hike, which was designed to target all properties with a rateable value of £500,000 and over, for ‘anchor’ high street stores.
“If the government continues to increase costs on businesses in the same way as they have begun, there will not be any businesses left on our high streets to tax,” said Baroness Scott of Bybrook.
News that Unilever has sold The Vegetarian Butcher to plant-based brand Vivera for an undisclosed sum has been widely covered, after being broken by The Grocer yesterday afternoon. The deal has been in the works since last year, when moves were first made to offload the meat-free brand as part of an ongoing portfolio optimisation.
It comes as part of a wider strategic move by Unilever to focus on “fewer, bigger brands” as it streamlines its existing portfolio – which includes Marmite, Dove and Ban & Jerry’s – for long-term growth and scalability, focusing on fewer, bigger brands.
Sainsbury’s announced a £61m partnership with UK pig and poultry producer Cranswick to improve its supply of pork. The 10-year deal, reported in Farmers Guardian, will deliver a ”new standard for animal welfare” with the aim of helping farmers feel more confident to invest in farming in the future, as they look to build a more ”resilient” sector.
CCO Rhian Bartlett said: “There is an ever-evolving relationship between retailers, farmers, and processors but we hope this news serves as a good example of what is possible when people come together in the food system.”
The Telegraph is reporting on the news that Shreddies maker Cereal Partners UK&I is axing 300 jobs as it looks to move production to a new, smaller factory. The company, which also makes Cookie Crisp and Nesquik cereals, will also be putting an end to any supermarket own-label cereals it is currently producing.
The decision, which was also published in The Grocer, has been blamed on a “significant decline” in demand for breakfast cereal as well as increased competition from exciting new alternatives. Supermarket cereal sales have been slowing, with the sector struggling to stay relevant, as revealed in The Grocer’s category report earlier this year. Traditional cereals have dropped more than any other breakfast item in the past four years, while the UK’s top 10 cereal brands have sold 10.1 million fewer kilos.
A call to boycott of popular Nestlé, Mondelēz and Proctor & Gamble brands such as Kit Kat, Smarties and Aero chocolate, has been reported in The Guardian, as West Papua’s indigenous people are demanding action over alleged ecocide in their territory.
The paper reports that thousands of acres of rainforest is being cleared to produce palm oil, used in the popular brands, which include Oreo biscuits and Ritz crackers, as well as cosmetics brands Pantene and Herbal Essences.
More than 90 West Papuan tribes, political organisations and religious groups have endorsed the call for a boycott, adding that the products are ”linked to human rights violations”, as West Papuans are being violently forced to leave their land. Campaigners say the boycott should continue until the people of West Papua are given the right to self-determination.
Tesco’s newest security measures continue to be the subject of media attention, with Yahoo News reporting on the sliding shelf screens that have been installed in front of some items, including chocolate bars and boxes from brands such as Dairy Milk, Lindt and Ferrero Rocher.
Security has been ramped up still further in one London store, it is reported, with the alcohol aisle now all but inaccessible as the products are locked behind doors which need a code to open. Each product was also in an individual metal security cage with tags.
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