Bidcorp UK chief backs call to raise ‘stubbornly low’ school meals funding
Speaking on Radio 4’s Today programme, he was asked about the consequences for the hospitality industry of continuing high rates of inflation.
He said: “I think we’re already seeing a number of hospitality businesses suffering; there is a number of well-publicised closures and administrations and I think it’s a very tough time out there.
“But I also think the other thing we need to talk about are the parts of the market where there is no opportunity to increase prices. We’ve talked about free school meals, and that funding remains stubbornly low and is falling behind the real rate for providing a school meal when you take into account wages, energy and food costs.”
He was also asked whether raising interest rates was the right thing to do to combat inflation.
He said: “In my opinion it’s not because it is just stifling the economy.
“Inflation is coming from external factors, not flagrant spending by the population in the economy and I think the Government needs to be looking at how they can support industry, how they can support the public sector to weather the storm and then get into quick recovery and quick growth which will help stimulate the economy.”