Babak Belurs

Jumat, 15 Januari 2021

UK economy shrank by 2.6% in November as services suffered - BBC News

People walk past a store with the words 'Closing down sale 20% off everything' painted on the window

The UK economy shrank by 2.6% in November as England was placed in lockdown for a second time, official figures show.

The Office for National Statistics said it meant gross domestic product was 8.5% below its pre-pandemic peak.

November's decline came after six consecutive months of growth.

Pubs and hairdressers were badly hit as the service sector suffered, the ONS said, but some manufacturing and construction activity improved.

The hit to the service sector - which accounts for about three-quarters of the UK economy - meant it contracted by 3.4% in November, and is now 9.9% below the level of February 2020.

Chancellor Rishi Sunak said the figures showed "it's clear things will get harder before they get better and today's figures highlight the scale of the challenge we face".

However, he said the vaccine roll-out and economic support measures meant there were reasons to be hopeful. "With this support, and the resilience and enterprise of the British people, we will get through this," he said.

ONS director for economic statistics Darren Morgan said: "The economy took a hit from restrictions put in place to contain the pandemic during November, with pubs and hairdressers seeing the biggest impact."

However, he said many firms adjusted to the new pandemic working conditions, such as by expanding click and collect and other online operations.

He added: "Manufacturing and construction generally continued to operate, while schools also stayed open, meaning the impact on the economy was significantly smaller in November than during the first lockdown.

"Car manufacturing, bolstered by demand from abroad, housebuilding and infrastructure grew and are now all above their pre-pandemic levels." Construction activity grew by 1.9% during the month.

What is GDP?

Gross domestic product (GDP) is the sum (measured in pounds) of the value of goods and services produced in the economy.

But the measurement most people focus on is the percentage change - the growth of the country's economy over a period of time, typically a quarter (three months) or a year.

If the GDP measure is up on the previous three months, the economy is growing. That generally means more wealth and more new jobs.

If it is negative, the economy is shrinking.

What is GDP and why does it matter?

The latest GDP figure was better than some analysts had forecast, but there are still concerns that the UK could be heading back into recession.

Economists have warned the UK could see a double-dip recession if restrictions remain in place in the first three months of 2021.

Rory Macqueen, from the National Institute of Economic and Social Research, said the November figures confirm a significant slowdown in the last quarter of 2020, "despite November's lockdown in England clearly having a far smaller effect than the first".

Recovery

James Smith, research director of the Resolution Foundation, said there would be a lot of comment about whether these figures point to the UK heading for only its second-ever double-dip recession on record.

But, he said, the real "story of the year will be a vaccine-driven bounce back in economic activity for sectors like hospitality and leisure".

"The chancellor must do everything he can to support that recovery once public health restrictions ease," he added.

Analysts at Capital Economics also said there was cause for optimism, saying that the current third lockdown could have less impact than feared.

"The economy has built up a fair bit of immunity to lockdowns, as November's lockdown was much less painful for the economy than the first lockdown.

"As a result, the Covid-19 economic hole is smaller than we thought, the economy may get back to its pre-crisis crisis level a bit sooner and it makes us more confident that the Bank of England probably won't resort to negative interest rates."

Analysis box by Faisal Islam, economics editor

The fall in the economy in November was still considerable, but the figures show businesses adapting to difficult conditions. The hit was a fraction of what occurred in the first lockdown last April, and was mainly confined to the service sector, with pubs and hairdressing for example in sharp decline.

Manufacturing and construction largely remained open, as did previously shut public services such as schools. By November car manufacturing and house building were back above the level of output before the pandemic.

The trade figures also showed a £7bn increase in EU imports in the three months to November as traders stockpiled car parts, medicines and other goods ahead of the end of the Brexit transition period.

The renewed regional tiered restrictions in December, and more severe national lockdowns this month, still indicate a possible return to overall recession in this tough winter.

Business groups continue to argue that extra support is required to support jobs and cash flow well before the Budget in March. But a more sustained lifting of restrictions as vaccines are rolled out should see growth return after the spring.

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2021-01-15 09:36:00Z
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Marcus Rashford enlists Jamie Oliver to demand No10 'urgently reviews' school meals - Daily Mail

Marcus Rashford enlists Jamie Oliver and Emma Thompson in demanding No10 'urgently reviews' free school meals policy to find 'long term fix' - as scandal-hit catering firm unveils its NEW lunch boxes for poor children

Rashford and celebrities wrote to Boris Johnson to urge review of meal system
Comes after a week of scandal surrounding the packages and meals
Firm shamed over a particularly sparse revealed how they should look

By Dan Sales For Mailonline

Published: 09:46 GMT, 15 January 2021 | Updated: 10:19 GMT, 15 January 2021

The school meals scandal took a further twist today as footballer and campaigner Marcus Rashford called for an urgent review of the government's policy.

Man United star Rashford said in an open letter to No 10 signed by 40 NGOs, charities, education bodies and celebrity chefs, the system needed looking at again.

It came after an incident-filled week that saw one school meals provider's fare branded 'appalling' after one of its hampers went viral.

In the letter to the Prime Minister, Rashford welcomed the 'robustness' of his response to the 'inadequate' meal parcels being provided by some private companies.

But the letter said that after a series of problems - including over vouchers and the holiday provision of meals - had arisen during the pandemic, it was the right time to 'step back and review the policy in more depth'.

The note added: 'It is only by working together that we will end child food poverty.'

It was signed by Rashford as well as actress Emma Thompson and chefs Tom Kerridge, Jamie Oliver and Hugh Fearnley-Whittingstall.

Footballer Marcus Rashford and his mother at FareShare Greater Manchester in October

The letter signed by Rashford and others called for a review of the school meals system

Councillor Richard Watts, chair of the Local Government Association's Resources Board, said: 'Government was explicit that CWGS was not intended to replicate or replace free school meals, but was to enable councils to support low income households, particularly those at risk of food poverty as we moved towards economic recovery.

'Government should provide food vouchers to eligible families during February half-term as it did last summer, with councils using CWGS funding to provide additional support with partners where necessary.'

A Government spokeswoman said: 'As was the case over Christmas, vulnerable families will continue to receive meals and other essentials over February half-term via councils through the £170 million CWGS launched last year.

This is the food box contents that sparked the whole school meal scandal earlier this week

Food firm Chartwells released this today of how its five-day school meals hamper should look

This Woodside Primary Academy pupil's food parcel was supposed to last them a week

Some boxes have been praised by parents. St Dunstans School in Glastonbury were given top marks for this five days one, which included sandwiches and wraps from Real Wrap Co

Meal scheme will switch for half-term

The free meal system for school pupils will change over the February half term – as the government tries to balance its books by using a different department’s funding for the food.

In a switchover that has the potential to spark some administration issues, meals for those that need it will continue, but paid for from a different area.

Currently the Department for Education are in charge of providing cash for school meals during the coronavirus outbreak in term-times.

But when half term arrives something called the Covid Winter Grant Scheme, which comes from the DWP, will supply the money. It has £170m of funds.

It goes to councils who pay it forward to a number of different schemes to help families in need of assistance.

That includes extending free school meals support to those eligible when schools closed during lockdown.

This Covid Winter Grant was in place over Christmas and can see food parcels and vouchers go to those who need it.

'Our guidance is clear: schools provide free school meals for eligible pupils during term time.

'Beyond that, there is wider government support in place to support families and children via the billions of pounds in welfare support we've made available.'

Yesterday the government was criticised over plans for children to get their free supplies from a different scheme.

Currently money paying for parcels and lunches comes from a Department for Education initiative.

But new guidance on the free lockdown packages has said they will stop in the February half term and families will need to use the DWP-administered Covid Winter Grant Scheme through their local council.

It has sparked fears from Unions that the process could be mired in red tape and run the risk of children going hungry.

Meals campaigner Marcus Rashford had however praised the initiative when it was announced last year.

After the £170m grant was revealed in November he had said 'I very much welcome the steps that have been taken to combat child food poverty in the UK'.

The new criticism is understood to have stunned ministers and No 10.

Government heads and Downing Street have insisted the scheme will crossover with the current package to ensure no-one misses out.

Union bosses slammed the project today, fearing it would leave children hungry.

Kevin Courtney, Joint General Secretary of the National Education Union, said of the planned change to the provision of the meals: 'This is an unnecessary logistical nightmare.

What should be in a food hamper for school meals lasting a child for one week

How much should the free school meals really be worth?

Free school meal allowances are usually £2.34 per pupil per day, an additional £3.50 per seven days has been added in lockdown, equalling £15.20 a week.

The Government has told schools to work with their school catering team or provider to make up the food parcels, especially if kitchens are open.

Unlike in the first lockdown, vouchers are considered only after every effort to provide the supply boxes have been exhausted.

The government guidance suggests 'you can consider other local arrangements, which might include vouchers for local shops and supermarkets'.

School costs of providing the vouchers can then be reimbursed by the government to the amount of £15 per week.

A school catering source told MailOnline: 'Staff haven't experienced anything like this before. They are working through a pandemic to make the food boxes for the parents some don't even collect them.

'For those in school staff were expecting 120 children from the key worker parents and vulnerable children for free school meals still, 40 turned up.'

'The Government has, once again, revealed its total disregard for those hardest hit by the ongoing health pandemic.

'After a year in which the stark inequalities faced by millions of children and young people has been at the forefront of the minds of the public, the ugly spectre of holiday hunger is now looming yet again.'

It came as Priti Patel yesterday called for the £24.8billion-earning company behind the meal parcel that sparked the school dinner scandal to be punished, declaring 'they should be ashamed of themselves'.

The Home Secretary described the food package from Compass group-owned Chartwells as an 'appalling display' that was 'totally unacceptable'.

A government investigation is currently underway into the meal, which prompted a reintroduction of the more popular vouchers.

But even those are feared to have caused further problems - after concerns having to print them out at home to spend could be difficult for families with no equipment.

The issue of pupils' lunches while schools are shut in lockdown has prompted furious debate among politicians, celebrities and families.

Mrs Patel said: 'The vouchers scheme is coming back in place on January 18 - quite frankly that scheme is just so, so important.

'I do think the company that was involved in that appalling display of food parcels should be ashamed of themselves, quite frankly.

'It's totally unacceptable and it is right that the Government is investigating them.

'I personally think that some action should be taken against that company,' she added in an interview with Holly Willoughby and Philip Schofield on This Morning.

In response to the new letter, a Downing Street spokesperson said: "It is great that celebrities and groups across society see the importance of school food. The PM thanks Marcus Rashford for his letter and will reply soon.

"School food is essential in supporting the health and learning of the most disadvantaged pupils. The prime minister has been clear that no child will ever go hungry as a result of the pandemic".

How many children get them? What should they include? Who compiled the parcels? Free school meals explained

Have children been receiving school meals during the pandemic?

Yes. The Government said schools in England should provide meal options for all eligible pupils, including vulnerable children and the children of key workers, regardless of whether they are being educated in the classroom or at home.

Meals should be available free of charge to all infant pupils and those who meet the benefits-related free school meals eligibility criteria.

It said schools may consider working with their school catering team or an external food provider to provide good quality lunch parcels to eligible pupils who are at home.

Around 1.3million children in England are eligible for free school meals.

What has Marcus Rashford got to do with it?

The England star became known for food poverty campaigning during the pandemic, forcing a Government U-turn on offering free school meal vouchers over the summer holidays.

The 23-year-old has drawn widespread praise for highlighting the issue, with his campaigning also resulting in the Government back-tracking to announce free meals would be provided to disadvantaged children over the Christmas holidays too.

He described the food offerings shown in pictures that emerged this week as 'just not good enough' and called for the system to be fixed 'quickly'.

What did the pictures of food on social media show?

An image posted on Twitter by a mother called Sarah showed the food she had received all laid out, and she wrote: '2 days jacket potato with beans, 8 single cheese sandwiches, 2 days carrots, 3 days apples, 2 days soreen, 3 days frubes. Spare pasta & tomato. Will need mayo for pasta salad.

'Issued instead of £30 vouchers. I could do more with £30 to be honest.'

Who put the parcel together and have they explained their efforts?

Education Secretary Gavin Williamson said it has been made clear to Chartwells, the company that provided the pictured parcel, as well as the entire education food sector, that such behaviour 'will not be tolerated'.

Chartwells said the picture shows five days of free school lunches (not 10 days) and the charge for food, packing and distribution was £10.50 and not the £30 suggested by Sarah.

The company said they are very sorry that the quantity has 'fallen short in this instance', later adding that they will be adding breakfast into their parcels from January 25, which will be free to schools for all children eligible for meals.

Rashford, who said he had reached out to Chartwells, tweeted that they had clarified that they were not the exclusive supplier of free school meals across the UK.

What is a food parcel expected to contain?

The Government website provides a link to a webpage which sets out some general principles for putting together a food parcel.

It includes a list of food items billed as an example parcel for one child for five days.

The list includes: one loaf of bread or pack of rolls/10-inch wraps, two baking potatoes, one cucumber, three large tomatoes or one pack of cherry tomatoes, one standard tin of sweetcorn in water, five portions of fresh fruit (eg apples, satsumas, bananas) or three portions of fresh fruit and one tin fruit in juice (eg pears, peaches, fruit cocktail), two items from the following: one pack of sliced cooked meat (eg chicken, ham or vegetarian alternative) or one tin of meat or one tin of tuna in water or six eggs, 200g block of cheese or three cheese portions, one tin baked beans, one 500g pot plain low-fat yoghurt or three individual serving yoghurt pots, one litre / two pints semi-skimmed milk.

Can families receive vouchers instead?

Yes, soon. Mr Williamson said the national voucher scheme for free school meals will relaunch next week, after education leaders, campaigners and MPs called on the Government to roll out the programme urgently.

People will receive an email from supplier Edenred by January 14, advising on how to either reset their password or activate their account for the first time.

They will then receive an email confirming when they can order vouchers during the week commencing January 18.

Once families have received their voucher, they will be able to redeem them in store by either presenting a paper copy or showing it on a smartphone.

What about pupils in other parts of the UK?

The governments in Scotland, Wales and Northern Ireland make their own provisions for school lunch funding.

In Scotland, local authorities and schools use different approaches depending on their individual circumstances and in response to local needs, including cash payments to families of eligible children; supermarket vouchers; home deliveries or through attendance at school.

In Wales, councils are able to make a payment to cover the provision of school meals where needed.

In Northern Ireland, a payment will be made on Friday January 15 to the parents and guardians of all children, including vulnerable children and children of key workers, who are entitled to free schools meals for the period of January 4 to January 22.

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2021-01-15 09:46:00Z
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Marcus Rashford and top chefs demand free school meals review - BBC News

Marcus Rashford and a group of celebrity chefs and campaigners have called on Boris Johnson to review the government's free school meals policy.

The group, including Jamie Oliver, Hugh Fearnley-Whittingstall and Tom Kerridge, have written to the PM asking him to "fix" the system long-term.

They called for a strategy to help "end child food poverty" before the summer holidays.

No 10 said "no child will ever go hungry" because of the Covid pandemic.

The call for a wide review comes after another row over free school meals during February half-term.

The government has said food will be provided to children by councils under the Covid Winter Grant Scheme while schools are closed for the holiday.

Councils and unions say the government should provide food vouchers instead, with the Local Government Association's Councillor Richard Watts telling BBC Radio 4's PM programme the grant had already been allocated for other support.

But Transport Secretary Grant Shapps told BBC Radio 4's Today programme: "We are down to semantics whether it is the school delivering the meal or whether it is the local authority - fortunately there is quite a lot of different support available."

As well as getting the backing of Rashford - who has led campaigns around child poverty over the course of the pandemic - the letter has been signed by chefs Oliver, Kerridge and Fearnley-Whittingstall, along with actor Dame Emma Thompson and over 40 charities and education leaders.

Organised by the Food Foundation charity, the letter said it was time to "step back and review the policy in more depth".

They called for an "urgent comprehensive review into free school meal policy across the UK" to feed into the government's next Spending Review, saying it should look at:

the threshold for being eligible for free school meals
funding - including whether the current allowance is enough
how schools can be helped to provide the best quality meals
the impact of Covid on children in low-income families
making sure there is no stigma

The signatories praised the Department for Education's "swift response" to reports earlier this week of inadequate food parcels sent to families, saying the "robustness of the message from you and the secretary of state on this issue was very welcome".

But, they added that "following the series of problems which have arisen over school food vouchers, holiday provision and food parcels since the start of the pandemic", now was the time for a review.

Anna Taylor, executive director of the Food Foundation charity, said the last few months had seen "crisis after crisis with the provision of free school meals".

"The result of that is disadvantaged children have often paid the price," she told BBC Radio 4's Today programme.

"Our view is that really unless we do a root and branch review these problems are going to still keep appearing."

Chef Fearnley-Whittingstall also called for a more consistent, long-term response to the issue of food poverty.

"We need to get out of this fire-fighting, highly reactive series of actions by the government," he told the same programme.

'Vital next step'

The signatories want a review to be published and debated in Parliament before the 2021 summer holidays.

"We are ready and willing to support your government in whatever way we can to make this review a reality and to help develop a set of recommendations that everyone can support," the letter said.

"School food is essential in supporting the health and learning of our most disadvantaged children.

"Now, at a time when children have missed months of in-school learning and the pandemic has reminded us of the importance of our health, this is a vital next step."

In response, a Downing Street spokesperson said: "It is great that celebrities and groups across society see the importance of school food. The PM thanks Marcus Rashford for his letter and will reply soon.

"School food is essential in supporting the health and learning of the most disadvantaged pupils. The prime minister has been clear that no child will ever go hungry as a result of the pandemic".

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2021-01-15 09:33:00Z
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'Gave you £200 million!' SNP under fire after fishermen denounce Brexit export struggle - Express

The SNP have already called on the Westminster Government to provide Scotland with additional funds to help fishermen struggling to export into the European Union since January 1. Transport Secretary Grant Shapps questioned the Scottish Government, insisting they had specifically received £200 million to ensure the nation was prepared for the end of the Brexit transition period. Scottish fishermen have warned the additional red tape they have been forced to go through has left them unable to deliver their products timely as they were unable to cross the Channel.

Mr Shapps told Good Morning Britain: "The UK Government has given the Scottish Government nearly £200 million to minimise the disruption and make sure businesses are guaranteed to be ready for that paperwork.

"And we have been very much encouraging them and everybody else that paperwork is ready."

He continued: "I know the UK Government is working very closely with the Scottish Government, with the fishermen, with the industry to make sure whatever these teething problems are that are creating these issues, that the correct paperwork is issued and they can get their fish exported."

The Brexit trade deal the UK and the EU struck in late December 2020 left traders on both sides with additional bureaucracy to cope with before being able to move goods.

JUST IN: £1bn extra just like that! Boris to SCRAP hated EU law - despite Labour fury

The issue of financial support to Scotland was brought up in the Commons on Thursday during a heated debate between SNP MP Stewart Hosie and International Trade Secretary Liz Truss.

Mr Hosie demanded further clarity and help to resolve the border issues that have developed between the UK and the EU since the end of the transition instead of shifting the attention on future agreements.

The SNP MP said: "Would it not be better to fix the problems at the UK EU border where real exports take place rather than make vague promises about future promotional campaigns?"

But the Conservative frontbencher was quick to shut down the criticism suggesting Mr Hosie question First Minister Nicola Sturgeon and her Government about additional funds.

But despite the funds Scotland received, fishermen across the nation have reported serious disruption to their trade.

Because of the bureaucratic pressure weighing on them, some members of the industry have resolved to go the extra mile to land their catch in Denmark in a bid to recover from the losses experienced in the past two weeks.

Danish auctioneer Jesper Kongsted said the number of Scottish vessels landing in the Scandinavian country has more than doubled compared to the last months of 2020.

Mr Kongsted said: "We are in dialogue with 10-15 new vessels because their market has suddenly become something completely different on January 1.

"From January 1-4 their market was much like ours. But from January 5 the prices have completely collapsed over there."

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2021-01-15 09:06:00Z
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