The Insight: on consumers, change and coffee

Here at The Insight, we love to get away over the Summer. This year we’ve been to Switzerland, France and Cornwall. But it’s only so long until we’re straining at the bit to get back to delivering more insights.??

This month, we look at consumer confidence, changes proposed by the new Labour Government, and the EU Deforestation-free Regulation – which impacts import and export of commodities like cocoa and coffee.?

Consumers are off on holiday, but they’re watching what they spend?

Everyone deserves a break over the Summer. And UK consumers are taking one, with spending on travel and holidays up 22% year-on-year.?

But, despite the holiday vibes, consumers aren’t feeling any more secure about their financial security – and that means they’re still watching what they spend on most items. Almost a third are buying more products on promotion or discount. And a similar proportion are buying fewer items and more own brand value products.?

Well over half (57%) of consumers don’t expect their financial security to change for the rest of 2024. So, how can you win custom? Value for money matters, so make sure you understand what that means to your customers. And experience is still a differentiator, so look at how you can create seamless buyer journeys across your channels.?

Read our full UK Consumer Pulse Snapshot for July 2024 ?

A new deal for working people; new employment law for you??

The new Government is committed to ‘making work pay’ by strengthening working rights. Changes coming under the New Deal for Working People include:?

• New day one workers’ rights to sick pay, parental leave, flexible working and unfair dismissal protection.?

• New disability and ethnicity pay gap reporting requirements, mandatory gender pay gap action plans, and a statutory right to equal pay for ethnic minority and disabled workers?

• A boosted National Minimum Wage (NMW)?

• A single employment status of worker, simplifying tax and legal tests round employment status.?

And that’s just for starters.??

Of course, the devil will be in the detail and there’ll be consultation before this comes into play. But the direction of travel is clear, and it makes sense to start preparing now.??

So, look at how the new day-one rights will impact your existing policies – what does immediate unfair dismissal rights mean for your hiring practices and probationary periods? Put in plan a place to collect data on ethnic minority and disabled workers if you’re not doing it already. And calculate the cost of the new NMW on your business – particularly if you employ lots of 18-21 year-olds.?

Watch our experts break down the key legal and tax changes ??

What do cocoa, coffee, palm oil, wood, rubber and cattle have in common??

They’re all linked to deforestation. And they’re all covered by the EU Deforestation-free Regulation (EUDR), which came into force on 29 June. If you import any of them to, or export them from, the EU, read on. If not, you can scroll past this bit – unless you’re interested of course.?

Large and medium-sized operators and traders will have until 30 December 2024 to demonstrate compliance with the EUDR, while micro and small enterprises will have until 30 June 2025. And they’ll need to show that:?

• The product itself, its ingredients or its derivatives are not produced on land that was deforested or degraded since December 31, 2020?

• The commodities are produced in accordance with the laws in the country of production, including on human rights, and that the rights of affected indigenous peoples have been respected.?

Penalties can include fines of up to 4% of annual turnover.?

Read the full article on the EU Deforestation-free Regulation ?

The new Government and your business?

Okay, we’ll be upfront, there’s not much in the way of insight in this bit. To get that, you’ll need to tune in for our next ‘Insights for leaders’ event on 11 September.??

We’ll ask whether the Government is in a good position to fulfil its mission to rebuild Britain and kickstart economic growth. And we’ll provide insights on what you can do to have your say and prepare for change.??

Here’s what we’ve got lined up:?

• The Bank of England upgraded its outlook for growth and cut interest rates. Our Vice Chair and Chief Economist Yael Selfin shares her latest forecast for the UK economy.?

• A thriving retail sector is vital to the health of the economy. Helen Dickinson OBE, Chief Executive, British Retail Consortium, gives us her views on the outlook for retail.?

• Accelerating investment in innovative tech businesses will be key to driving growth. Janine Hirt , CEO, Innovate Finance, shares views from FinTech.??

• Labour plans to make Britain a clean energy superpower. Simon Virley CB FEI , Vice Chair and Head of Energy & Natural Resources, KPMG updates us on the energy transition.?

• It’s not just Labour’s plans for Britain that business leaders need to be on top of. Jens Larsen of Eurasia Group, provides insights on the political and economic situation elsewhere.?

Register for ‘The new Government and business: Driving growth under Labour’ ?

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We wrap this edition up by saying goodbye to our national charity partner, Marie Curie UK . With less than a month away from the end of our partnership, we're incredibly proud to share that our UK colleagues have raised over our initial target of ￡1 million, a number that will be sure to grow over the coming weeks.??