Commons Sense

House of Commons · Ministers' Questions

Wholesale Food Service Sector

Tuesday 26 January 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The Government have sought to protect jobs and livelihoods and support businesses during the COVID-19 crisis.
  • Food and drink wholesalers have been severely impacted by restrictions to control the virus.
  • The Treasury is in regular discussion with the Department for Environment, Food and Rural Affairs to assess risks to the food supply chain.

Topics (select to filter)

Questions & Answers

Q1 Carolyn Harris Lab Neath and Swansea East
Economy Business & Trade
Context

The question arises from the impact of COVID-19 restrictions on businesses in the wholesale food service sector, which are experiencing significant financial strain.

Question

What assessment has been made of the potential merits of providing financial support to wholesale food service sector businesses affected by COVID-19 restrictions?

Answer from John Glen

Throughout the covid crisis, the Government have sought to protect people's jobs and livelihoods, and support businesses and public services across the UK. We recognise that food and drink wholesalers have been severely impacted by the necessary action we have taken to control the virus, but those businesses have been eligible for a number of our economic support schemes, including the job retention scheme, VAT deferral and bounce back loans.

Partly answered

Not addressed: The specific ask was for an assessment on providing additional financial support specifically for wholesale food service sector businesses; no new commitment or detailed evaluation was provided beyond existing schemes.

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Q2 Carolyn Harris Lab Neath and Swansea East
Business & Trade Agriculture & Rural Affairs
Context

The situation has worsened with a significant drop in trade due to hospitality business closures, causing wholesalers to supply essential services at financial loss and facing potential collapse.

Question

Food service wholesalers have again seen their trade drop by 95% with hospitality businesses closing, yet they continue to supply our hospitals, schools, care homes and prisons at a financial loss. Many now are on the brink of collapse. What more are the Government going to do to help the industry, which is suffering a double whammy of lost stock and ongoing fixed costs?

Answer from John Glen

I thank the hon. Lady for her question, and, indeed, I met representatives of the sector in my constituency a few weeks ago. The Treasury is in regular discussion with the Department for Environment, Food and Rural Affairs and they are assessing the systemic risks to the food supply chain of the fulfilment of those public sector contracts to schools, hospitals and prisons. We keep these matters under close review, but at the moment there is no threat to those supply chains and, as I referenced, the options that are available to those firms continue to be available.

Partly answered

Not addressed: The specific ask was for concrete actions or commitments beyond existing support; no new commitment was made despite acknowledging ongoing assessments.

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