PLEA FOR HELP FROM CHANCELLOR

A plea is being made to Chancellor George Osborne to make a great British treat - ice cream - more affordable.

The UK ice cream industry is reeling from a huge increases in overheads including the cost of ingredients, fuel and the rise in VAT.

This coupled with recent wet summers and harsh winters has seen sales drop alarmingly for some ice cream sellers and there is a fear that many could be forced out of business.

Now the national body for the ice cream industry - The Ice Cream Alliance - is calling on the Chancellor of the Exchequer to classify ice cream as a food rather than a luxury item and reduce its VAT loading which is currently 20 per cent.

Zelica Carr Chief Executive Officer for The Ice Cream Alliance said: "The ice cream industry plays a major part in the economy of the UK with sales of around £1.3 billion a year but many businesses are fearing for the future after being hit by a succession of swingeing price increases.

"I have written to Mr Osborne asking him to reconsider the classification of ice cream as a luxury product and re classify it as a food and reduce the VAT levied on it to zero.

"Ice cream plays an important, if often under appreciated, role in British life. It provides an affordable feel good factor which in today's economic climate is sadly lacking for many families."

In her letter Mrs Carr said a reduction in VAT on ice cream would "be welcomed by a struggling ice cream industry and would have a significant and positive impact upon the spirit and morale of the nation."

The ice cream industry is reeling from massive price increases which has seen sugar rise from £460 a ton in January to £800 with fears that it could rise to £1400 in June. Skimmed milk powder has increased from £1800 per ton in January to £2900 while cocoa powder has virtually trebled from £1250 per ton to £3600.

Mrs Carr said: "Unfortunately, faced with such substantial increases many ice cream manufacturers and sellers will have to pass at least part of the increase on to customers but this rise could be cancelled out if VAT on ice cream was reduced."

The Ice Cream Alliance is a not-for-profit organisation which for 60 years has been dedicated to supporting the production and vending of premium ice cream.

Its membership numbers over 600 with businesses involved in every aspect of the trade including manufacturers that range from multi-nationals through to artisan producers supplying their local communities.

ENDS

Media Contact: Steve Verrill –VPR – 01430 871166 or 07803 589282