MORE BREXIT CHEER: Food and drink sales at HIGHEST level since 2013 after historic vote
SALES in the UK's food and drink sector reached their highest levels since 2013 following the Brexit vote.
Food and drink sales are at their highest level since 2013
A majority of Food and Drink Federation (FDF) members - who make up the largest manufacturing sector in the UK - have reported increased ingredient prices, a drop in product margins and concerns for the future raised by their EU workforce.
The survey coincides with quarterly figures from UK retailers showing food sales at their highest levels since 2013, "suggesting a disparity between business and consumer confidence levels", the FDF says.
The FDF is calling for an "industrial strategy partnership" with Government and for urgent assurances for the industry's workforce from the EU that they will have the right to remain in the UK.
In the survey, almost three-quarters (71 per cent) of companies employing EU staff say these employees have expressed concerns about the referendum outcome, with about one in 12 (8.7 per cent) businesses reporting that EU employees intend to leave the UK.
The FDF have reported increased ingredients prices and a drop in margins
FDF director general Ian Wright said: "We share Government's view that we need to make the best of Brexit. Food and drink industry confidence is low. Slower revenue growth, coupled with prolonged business uncertainty, is affecting the industry's ability to invest.
We share Government's view that we need to make the best of Brexit
"The assurances we heard from Government last week must be underpinned by credible plans for restoring confidence and negotiating a workable future relationship with the EU.
"Working with Government through an industrial strategy partnership, we believe we can counterbalance uncertainty arising from the EU exit process and secure world-class status for the sector."
The majority of FDF companies said their EU workforce have raised concerns about their future
Non-EU workers in UK worried about future right to work
One in 12 companies said their employees intent to leave the UK
MP John Stevenson, chairman of the All-Party Parliamentary Group for Food and Drink Manufacturing, which meets today to discuss what Brexit means for the sector, said: "Brexit will present both challenges and, through sensible negotiation, opportunities for businesses in the UK's largest manufacturing sector - food and drink.
"Food and drink is a national success story, with massive untapped opportunity to boost exports and improve its already impressive productivity performance, delivering even more for the UK economy."