New Government under Prime Minister Rishi Sunak
The decision by the former Prime Minister, the Rt Hon Liz Truss MP, to resign triggered a leadership contest that was won by the Rt Hon Rishi Sunak MP. He became Prime Minister on 25 October 2022 and undertook a sigficiant ministerial reshuffle.
A number of the ministerial changes were relevant to the furniture and furnishings sector. These included Rebecca Pow MP who was appointed Minister for Environment Quality and Resilience, with responsibility for waste. Kevin Hollinrake MP was appointed Minister for Enterprise, Markets and Small Business. His responsibilities include the Office for Product Safety and Standards (OPSS), small businesses and enterprise.
Confederation Lunch Review
The BFC held the Confederation Lunch on 19 July 2022 in the House of Commons which has provided a useful opportunity for industry representatives to meet parliamentarians.
The event attracted Ministers and other parliamentarians but the hot weather conditions impacted industry attendance. Following the event, the BFC undertook a review and collated feedback and learnings for future events.
UK Furniture Industry representation in parliamentary constituencies
The BFC commissioned new research which ranked parliamentary constituencies alongside the number of furniture and furnishings businesses in each constituency. This was completed by Brevia Consulting in August 2022. This data is now being used to identify and communicate with parliamentarians with large numbers of businesses in their constituencies.
Energy Utility Survey
At the BFC Executive Meeting on 12 September 2022, the BFC agreed to conduct a survey on energy usage within the sector. A comprehensive set of questions was agreed within the BFC for circulation with their respective members. The BFC is now looking to raise the findings with government and the All Party Parliamentary Furniture Industry Group.
Ongoing engagement with the Department for Business, Energy and Industrial Strategy
The BFC has continued to liaise with Civil Servants in BEIS to ensure that industry concerns and issues are brought to the immediate attention of ministers. These have included labour shortages, business rates relief, the future of the super-deduction capital allowance, skills and training, the cost of energy, and supply chain challenges.
Consistent Industry Data
BFC Executive members agreed at the BFC meeting in May 2022 to make the data used to measure the success of the furniture and furnishing industry more consistent. The aim is for the industry and government to speak with one voice on statistics like the size of the industry, the value of exports and the number of people employed.
Work is close to completion and, at the recent BFC Executive meeting on 14 November, a discussion was held on SIC Codes and the need to ensure a consistent list of SIC Codes were being utlised when collating data.
The Autumn Statement 2022
The Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, delivered his 2022 Autumn Statement on 17 November 2022.
The Chancellor announced three priorities: stability, growth and public services. The Statement confirmed a fiscal consolidation of £55 billion with around half coming from spending cuts and the rest from tax rises. Hunt announced two new fiscal rules.
- Firstly, underlying debt must be falling as a proportion of GDP by the end of a five-year rolling period.
- Secondly, public sector borrowing over the same period must be below 3 per cent of GDP.
The Government also committed to ‘help more small and medium-sized manufacturing firms boost their productivity through advanced digital technology by extending the Made Smarter Adoption’.
Flammability Regulations
The BFC is seeking clarity from the Government on their work to review and amend Flammability Regulations. Following the appointment of a new Minister, the BFC will seek clarity on the safety requirements and types of furniture that will be covered in any proposed amendments, along with the revised timetable for the revision of the regulations.
Tradeshow Support
The BFC is working with the All Party Parliamentary Furniture Industry Group to address the need for better trade show support. The Confederation is supporting a proposal submitted by Export Partners UK (EPUK) that offers an enhanced and simplified UK Tradeshow and Mission Programme to support the furniture and furnishings sector.