Ice cream industry appeals for government help

Reeling from huge increases in overheads including the cost of ingredients, fuel and the rise in VAT, the UK ice cream industry is pleading for government intervention.
The national body reprsenting 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 20% VAT loading.

“The ice cream industry plays a major part in the economy of the UK, with sales of around £1.3 billion (€1.4bn) a year but many businesses are fearing for the future after being hit by a succession of swingeing prices increases,” says Zelica Carr, chief executive officer for The Ice Cream Alliance. “I have written to Chancellor George 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 feelgood 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’.