Scottish National Party (SNP) have called on the UK Government to rule out any further duty increase on whisky ahead of the Chancellor’s Autumn Statement.
Reports have suggested the Treasury will hike duty on whisky by 15 per cent when Chancellor Jeremy Hunt gives his Autumn Statement on Wednesday (22).
Calling on the demand, Richard Thomson MP, the SNP’s business and trade spokesperson, said that Scotland’s fantastic whisky industry is being disproportionately impacted by a UK Government.
“The UK Government continues to squeeze the life out of the Scotch whisky industry – an industry that plays a pivotal role in Scotland’s economy. They are only just coming to terms with the 10.1 per cent duty increase from the spring Budget. Increasing it to 15 per cent will rightly infuriate the sector further.
“As the world’s biggest international traded spirit, the UK Government should instead be focusing on investing and protecting the long-term future of the Scottish whisky industry.
The SNP claim this will cost the sector around £100 million and contradicts the Conservatives’ 2019 manifesto commitment, which pledged to “ensure our tax system is supporting Scottish whisky and gin producers and protecting 42,000 jobs supported by Scotch across the UK”.
Whisky is the world’s number one internationally traded spirit, with exports reaching £6.2 billion in 2022 – accounting for 25 per cent of all UK food and drink exports, 77 per cent of Scottish food and drink exports, and supporting more than 10,000 jobs in Scotland.
“For too long, the UK Treasury has reaped the rewards of Scotland’s whisky sector. Only with the powers of independence can we harness the full potential of this industry, and fully support our wonderful communities who deliver huge sums of money for Scotland’s economy.
Graeme Littlejohn, Scotch Whisky Association director of strategy, said, “This welcome support from the SNP confirms the clear political consensus which has formed over a duty freeze for Scotch whisky in this week’s Autumn Statement.
“The Chancellor Jeremy Hunt (above) should listen to those voices, which include Scottish Conservative leader Douglas Ross, who has called for a freeze on spirits until at least August next year.
“The tax burden on Scotch whisky is not sustainable, and the new duty system introduced in August has only made the situation for distillers worse. The Chancellor has a chance to support Scotch on Wednesday, and the industry will be watching closely.”
The Coca-Cola Company on Tuesday announced robust fourth-quarter and full-year 2024 results, demonstrating the effectiveness of its “all-weather strategy” amidst a dynamic global landscape.
The beverage giant reported a 6 per cent increase in net revenues for the fourth quarter, reaching $11.5 billion (£9.24bn), while organic revenues surged by an impressive 14 per cent. For the full year, net revenues grew 3 per cent to $47.1bn, with organic revenue up 12 per cent.
“Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments,” said James Quincey, chairman and chief executive. “Our global scale, coupled with local-market expertise and the unwavering dedication of our people and our system, uniquely position us to capture the vast opportunities ahead.”
Fourth-quarter organic revenue saw a 14 per cent jump, fueled by a 9 per cent rise in price/mix and a 5 per cent increase in concentrate sales. Full-year organic revenue grew 12 per cent, driven by an 11 per cent increase in price/mix and a 2 per cent rise in concentrate sales.
Fourth-quarter operating margin reached 23.5 per cent, compared to 21.0 per cent in the prior year. Full-year operating margin was 21.2 per cent versus 24.7 per cent in the prior year, impacted by items including a $3.1 billion charge related to the fairlife acquisition. Comparable operating margin expanded for both the quarter and the full year, driven by strong organic revenue growth.
Fourth-quarter earnings per share (EPS) increased 12 per cent to $0.51, with comparable EPS also up 12 per cent to $0.55. Full-year EPS declined slightly to $2.46, while comparable EPS grew 7 per cent to $2.88. Currency headwinds impacted both EPS and comparable EPS performance, the company said.
Coca-Cola added that it gained value share in total non-alcoholic ready-to-drink (NARTD) beverages for both the quarter and the full year.
Global unit case volume grew 2 per cent in the fourth quarter, and 1 per cent for the full year. Sparkling soft drinks grew 2 per cent for both the quarter and the full year. Trademark Coca-Cola also saw 2 per cent growth in both periods.
Juice, value-added dairy and plant-based beverages declined 1 per cent for the quarter and were even for the full year. Water, sports, coffee and tea grew 2 per cent for the quarter and declined 1 per cent for the full year.
The company attributed the decline in coffee, 1 per cent for the quarter and 3 per cent for the full year, to the performance of Costa coffee in the UK.
Looking ahead to 2025, Coca-Cola anticipates organic revenue growth of 5 to 6 per cent and comparable EPS growth of 2 to 3 per cent. However, the company expects a 3 to 4 per cent currency headwind for comparable net revenues and 6 to 7 per cent for comparable EPS.
Dutch brewer Heineken on Wednesday reported a slight dip in sales for last year, mainly due to currency fluctuations, although overall beer volumes increased.
The world's second biggest brewer after AB InBev said revenue in 2024 came in at €36 billion (£30bn), compared to the €36.4bn it made the year before.
Beer volume overall grew by 1.6 per cent. In 2023, the brewer reported a 4.7 per cent decline in overall beer volume.
"Our beer volume expanded in all four regions, across both developed and emerging markets," said CEO Dolf van den Brink.
Looking ahead, the company said it expected to post "continued volume and revenue growth" despite ongoing economic challenges.
These included "weak consumer sentiment in Europe, volatility, inflationary pressures and currency devaluations across developing markets, and broader geopolitical fluctuations," the firm said.
Net profits were down sharply, at €978 million, compared to the €2.3bn posted in the previous year.
However, the company explained this was due to a one-off impairment from an investment in China Resources Beer, whose share price tanked on the Hong Kong stock exchange.
This write-down already hit the half-year results. "It's old news," said Van den Brink, describing it as a "technical adjustment."
The firm forecast operating profit before exceptional items and amortisation to be in the range of between four and eight percent in 2025.
"All in all, we see good momentum," said the CEO.
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Retailers are set to face a "perfect storm of additional costs".
Retailers are set to face a "perfect storm of additional costs" as 300,000 jobs will go by 2028 due to the implication of recent budget, retailers have warned Chancellor Rachel Reeves.
Under a new body Retail Jobs Alliance (RJA), seven of Britain’s biggest retail chains have united to Reeves that her tax hikes will lead to even more devastating High Street closures and job losses.
According to the RJA’s analysis, at least one in ten retail workers could leave the sector before 2028, amounting to 300,000 staff.
The retailers are calling for shops to be protected from higher business rates, which are commercial property taxes, saying that this change would provide much-needed relief for at-risk stores, enabling them to reinvest in their businesses, retain staff, and grow their footprint on the High Street.
Labour has promised to ‘level the playing field between the High Street and online giants’ by replacing the levy, which is paid on the rateable value of a commercial property.
But under their plans, premises with rateable values of above £500,000 would pay more.
It has depicted this as targeting warehouses used by online shopping giants, but retailers say it would also hit over 4,000 bricks-and-mortar shops.
In the meantime, smaller retailers will pay thousands of pounds more because of a reduction in Covid-era relief from April.
As well as hitting shops with higher rates, the Chancellor announced a £25billion increase in national insurance and an inflation-busting hike in the minimum wage.
Helen Dickinson, boss of the British Retail Consortium, warned that with Reeves’ Budget adding over £7billion to their bills in 2025, retailers face "difficult decisions about future investment".
Confederation of British Industry chief executive Rain Newton-Smith warned businesses are "seriously flagging under the fiscal burden it had to shoulder at the Budget". She is calling for "decisive action’ that must include ‘fixing our punishing business rates system – fast".
RJA, which includes Tesco, Marks & Spencer and B&Q-owner Kingfisher, warned that retailers are facing “a perfect storm” of additional costs from this April.
This comes as M&S chief criticised the government, saying “retail is being raided like a piggy bank and it’s unacceptable”.
“The blunt truth is… the budget means UK retail will get smaller,” M&S chief executive Stuart Machin wrote in The Sunday Times, adding that while Reeves’ long-term growth ambitions are welcome “action [needs to be] taken to encourage growth today”.
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New Co-op report reveals in disparity in apprentices
Small businesses are "18 times less likely" to offer an apprenticeship scheme as compared to large businesses, a recent report has claimed, adding that some small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
Co-op in a report released on Monday (10) points out how more than a third (38 per cent) of school leavers face a lack of apprenticeship opportunities in their local area.
Co-op finds that two in three (68 per cent) school leavers agree that apprenticeships are more important now than in previous years, with almost half (48 per cent) seeing an apprenticeship as the most beneficial way of entering the world of work.
However, despite those from lower socioeconomic backgrounds being more likely to apply for an apprenticeship (73 per cent v 66 per cent), many are facing barriers to accessing apprenticeships.
Co-op’s research also included a survey of business leaders, which found that seven in ten agree that a socioeconomic gap exists when it comes to hiring apprentices. It also finds that small businesses are 18 times less likely to offer an apprenticeship scheme compared to large businesses.
Amongst those that do, one in five small businesses are not taking proactive steps to recruit apprentices from lower socioeconomic backgrounds.
The top reasons for this lack of proactive recruitment include: a lack of time and resources (38 per cent), uncertainty about how to access diverse talent pools (33 per cent), insufficient funding to support apprenticeship programmes (29 per cent), and concerns over increased training costs (14 per cent).
Furthermore, businesses in less advantaged areas lack higher level apprenticeship schemes, with only a quarter (26 per cent) of business leaders in these areas offering level six or seven apprenticeships, states the report.
Claire Costello, Co-op’s Chief People and Inclusion Officer, says, “The research paints a picture of the real and widespread relationship between an individual’s socioeconomic background and their unequal access to apprenticeship opportunities post-school.
"There has never been a more important time for the Government and UK businesses to stand up to reality and do more to ensure access to apprenticeships is fair and equitable for all young people.
"Someone’s background should not limit their career potential which is why we’re calling on an amendment to the IfATE Bill - to level the playing field so everyone can have a fair shot at reaching their full potential.”
The research comes as Co-op has written to the Education Secretary calling on the Government to give Skills England a statutory duty to improve social mobility across the country.
January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, shows industry report released today (11).
According to retail body British Retail Consortium (BRC), UK total retail sales increased by 2.6 per cent year on year in January, against a growth of 1.2 per cent in January 2024. This was above the 3-month average growth of 1.1 per cent and above the 12-month average growth of 0.8 per cent.
Food sales increased by 2.8 per cent year on year in January, against a growth of 6.1 per cent in January 2024. This was above the 3-month average growth of 2.3 per cent and below the 12-month average growth of 3 per cent, shows BRC report.
Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable.
"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories.
"With growth across nearly all categories, only toys and baby equipment remained in decline. While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month. This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix.
“Whether this strong performance can hold out for the coming months is yet to be seen. Inflationary pressures are rising, compounded by £7bn of new costs facing retailers, including higher employer national insurance contributions, higher National Living Wage, and a new packaging levy.
"Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores. Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates.”
Commenting on food and drink sector performance, Sarah Bradbury, CEO of IGD, said, "The current climate of economic uncertainty is reflected in IGD’s January shopper confidence index, which has declined by 3 points.
"With unemployment at 4.4 per cent (+0.4 per cent vs this time last year), shoppers have responded by employing strategies to control their spend.
"The notable increase in volume over value sales suggests a shift towards private label products and a change in purchasing categories, as shoppers anticipate further price rises for food and drink.”