Cost of Living and Food Insecurity

Catherine McKinnell Excerpts

Tuesday 8th February 2022 Commons Chamber

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Over the past few days, Nestlé has been confirming to its workforce in Fawdon that it will be closing its factory, with the loss of 500 good manufacturing jobs in Newcastle upon Tyne North. It is nothing short of a devastating blow to our community, especially to the workers, their families and the businesses around about that rely on their custom. My thoughts are with all those currently grappling with what this means for them and their families.

It is an incredibly sad end to well over half a century of proud chocolate making in Fawdon, during which time we have created and produced some of the most loved brands in this country, and it could not have come at a worse time for the workers and their families, with a cost of living crisis hitting household finances and a community still recovering from the devastation of the covid pandemic.

Since news of the potential closure emerged last year, I have met with Nestlé, and the GMB and Unite unions, which I know remain in discussion with Nestlé to negotiate the potential for jobs at alternative sites and enhanced packages for those who will be made redundant. I put on record my tribute to the unions for the work they put in to create alternative proposals to keep those jobs where they belong—in Newcastle. There is huge disappointment and anger that the proposals were rejected by Nestlé.

Unfortunately, it is not just those who are directly impacted who will feel the impact of this closure. It will have a huge effect on the wider community, with shops, businesses and supply chains that rely on the factory and the workforce losing that business and perhaps also becoming unviable. It has ripped the heart out of Fawdon, and we will need to work together to rebuild from this, but we need Government support.

The Minister should be aware that Nestlé’s UK CEO is a member of the UK Investment Council and a Government adviser on levelling up. Last week, we heard so many bold promises from the Government about levelling up communities in the north, yet here we have one of their own advisers taking jobs from one of the most disadvantaged communities in Newcastle. Many are understandably questioning why Nestlé, one of the world’s largest food companies, needs to close a profitable factory and offshore those jobs away from an area of the country that needs levelling up, not levelling down.

We do not want more households to rely on food banks. Food bank use was already unacceptably high before the covid-19 outbreak and it has sky-rocketed. Households are feeling the strain of the pandemic and we will see the cost of living crisis only grow as a result of this decision.

We also know that households with children are particularly affected, and how important it is for them to have regular healthy meals for their physical and mental development. So it is unfortunate that 11% of pupils eligible for free school meals in the north-east currently do not even claim that support, often due to the fact that it is a complex process and some are unaware of their entitlement. I would like the Minister to confirm that the Government intend to do something to put that right and that they will take forward the recommendation of the Dimbleby review to introduce automatic registration for free school meals.

Children in the north-east already face a double whammy of rising child poverty and the cost of living crisis. Introducing that one recommendation would be a simple step that would make a huge difference to hundreds of thousands of families across the country and put right some of the inadequacies of the free school meals system. The Minister has mentioned the upcoming food strategy White Paper, which is the perfect opportunity to do it, so it would be excellent if she could confirm that today.

While constituents at the Nestlé factory in Fawdon and in the supply chain face an uncertain future, with the added challenges of the cost of living crisis, and while many are already forced to use food banks to feed their children, the Government are hitting those same families with a rise in national insurance contributions and a total inability to tackle rising energy bills. I beg the Minister and the Government to plough less energy—indeed, no energy—into saving the Prime Minister’s political career and to get a grip on the cost of living crisis that is crippling our households. They should do more to level up, not just talk. We want to see action in Newcastle, but we are seeing the opposite at the moment.