Cadbury’s Keynsham factory is due to close in the next few days despite Kraft who took over Cadburys in February 2010 promising to keep the plant open. The number of people who will lose their jobs will be around an estimated four hundred. Once production ends the site will only require around fifty people to handle maintenance until March 2011. This dramatic news will not only affect chocoholics but the Bristol economy; in addition to the rise of the VAT.
A campaign has been running, “Save Our Keynsham Cadburys” aiming to keep the site open however this did not tug the heartstrings of Kraft. The campaign is to persuade people (chocolate lovers) not to purchase Cadburys chocolate once the production lines have moved to Poland. This is a movement to retain the essence of Britain within Cadburys chocolate. Sounds tasty, doesn’t it?
Looking back at Cadbury’s timeline it is evident that fantastic recipes have resulted in delicious delicacies. The questions to ask ourselves are have Cadburys bitten off more than they can chew having removed production from Britian? Will the famous brand evidently lose its sweet taste? Will the chocolate still have the CRUNCH (-ie) that it always used to? Will Cadburys still exist in fifty years time? Will you still buy chocolate imported from Poland?
The factory closing is yet another knock to the spirit of Britain, the economy and our heritage. Cadburys has helped generations but will it still continue to remain at the heart of the family in years to come or will it simply crumble effortlessly like the delicate nature of a Flake?
Who will this affect?
The rise in VAT will affect any VAT-registered business that purchases or sells goods or services that are currently subjected to the current standard rate of VAT.
What will not be affected by the VAT rise?
Most foodstuffs, children’s clothing and books will remain zero-rated. Reduced rates will remain on items such as fuel and power supplies and children’s car seats.
What is the aim of the VAT increase?
To help the UK’s current economy, tackle the deficit and raise £13bn.
Will spending increase?
The Labour leader Ed Miliband has said the average family will have to find an extra £7.50 “each and every week”, resulting in an extra £389 a year.
What is the prediction for 2011?
The BBC have predicted retail sales will fall by about £2.2 billion in the first four months of the year.
The VAT increase has been discussed continuously over the last few months by various political leaders and therefore the public planned ahead. Individuals spent the majority of their ‘Christmas spending money’ over the month of December and personally I have resisted the January sales. To help save money and spend wisely see a previous blog post offering advice on how to look fashionable and not spend a penny or how to provide high entertainment at low costs.