Shoppers, your country needs you. The credit crunch may be continuing to swallow up the high street, with another two major names, MFI and Woolworths, going into administration - but there is apparently one way to help: by going shopping. From tomorrow until the end of next year, VAT will be cut from 17.5 per cent to 15 per cent. The government hopes that will encourage consumers to go out and spend - and, in turn, help boost the economy.
But Nick Clegg, the Liberal Democrat leader, argues that if consumers are to help boost the British economy, there is no point buying products that aren't made here. 'Economic recovery starts at home, so consumers should be proud to buy British and buy local,' he announced last month. 'Restoring growth comes from putting money into people's pockets, through interest rate cuts and tax cuts. To have the greatest effect, that money needs to be spent here.'
Vicky Redwood, UK economist and consumer specialist at economic consultancy Capital Economics, agrees: 'If we are buying products made by UK companies, we are supporting UK jobs and encouraging our own industries. Consumers will be helping to support UK jobs, rather than jobs abroad, and profits won't be going abroad either.'
So, if the nation's shoppers are to kick- start the economy, what should they be buying?
Clothes, furniture and electrical goods, says Richard Dodd at the British Retail Consortium. 'These are the areas that have been through the toughest times, and they would benefit most from an increased level of sales. Obviously, buying a T-shirt is not going to revive the economy but if people are confident enough to go out and spend, then it's a good indication that the economy is improving.'
For food, buying home-grown, locally sourced produce not only cuts back on food miles, but will help British farmers, who are also suffering from the downturn and from more competitive pricing in supermarkets, according to the National Farmers' Retail & Markets Association. Even if you shop in supermarkets or large food stores, you can still pick items of British origin: all of Marks & Spencer's meat is British, and it sources as much British fresh fruit and vegetables as it can in season. Morrison's meat is also all-British.
Redwood suggests that consumers also consider making the most of what the UK has to offer in the way of holidays and travel. Holidaying in this country will not only help cut carbon footprint by avoiding flights overseas, but will boost the tourism industry as well.
'Look to what you can do here,' she says. 'If you take more holidays in the UK, it will stimulate business for UK hotels. If you did everything that you do on holiday abroad in the UK instead, like eating out at restaurants and so on, then you're putting back into the economy. Overall, if consumers buy British they will be helping UK companies across the board.'
Here are some of Cash's tips on the best British products.
Clothes
Luxury brand Barbour, whose products are worn by the Queen, is one of the few remaining clothing companies to keep its own factory in the UK. All of its classic wax jackets are still made in South Shields, Tyne and Wear, where 180 skilled machinists are based.
Sue Nelson, a spokeswoman for Barbour, says: 'Manufacturing used to be very big in the north but a lot of factories shut down as companies started manufacturing abroad instead. But it's very important for us to keep our skills here - we are one of the biggest employers in the region. It's part of our tradition and history for our jackets to be made here and we wouldn't want to change that.'
A Beaufort Barbour jacket, as worn by Helen Mirren in the film The Queen, costs £189, while the International jacket costs £219.
Ayten Gasson makes handmade lingerie at her London studio for Topshop and sources all her lace in Nottingham. 'Nottingham used to be the main place for fashion fabrics, but then everyone went over to the Far East,' she says. 'I've found the last remaining lace mill in Nottingham, which made the lace for Princess Diana's wedding dress. When something of that quality is on your doorstep, why not use it?' Gasson's pieces start from £15 and go up to £90 in Topshop.
Some of the most British-sounding brands, however, don't necessarily make their products here. Hackett's website describes itself as 'the home of essential British kit' but only a handful of its products, such as cufflinks and pyjamas, are made in the UK. Marks & Spencer sources its tweed - from Harris - in the UK, but like most other retailers, almost every item of its clothing is made abroad.
A spokeswoman for Marks & Spencer said: 'You can still be a British brand but sell products that are sourced globally - like Marks & Spencer. The British manufacturing base has shrunk drastically over the years, but even if you don't manufacture here, it doesn't mean you are not a British brand.'
Shoes
The UK makes the best quality shoes, says formalwear company Charles Tyrwhitt, which makes its shirts abroad but its shoes here. Its website says: 'We still manufacture all our shoes in the UK and this is because the UK still makes the best shoes in the world. Unfortunately, investment in infrastructure and training has not been maintained sufficiently in other areas of UK manufacturing. We wish it had.'
For a fine pair of homegrown shoes, try Northampton - the town has been manufacturing footwear since the 17th century. Even its football team rejoices in the nickname of 'the Cobblers'. There are still about eight factories there, including John Lobb, Tricker's, Crockett & Jones, Edward Green and Church's Footwear (owned by Prada).
Church's employs more than 500 people in its manufacturing group in the area. Spokeswoman Jenny Mead says: 'Shoe-making has always traditionally been in Northampton, because of the oak woods for tanning material. We've build up a niche product here, and shoe-making skills have been passed down through generations of families. If we were to move elsewhere, we'd lose our tradition.'
A pair of Church's Oxford shoes starts at £295 - but you can pick one up for less at the factory's outlet store on the outskirts of the town centre. Tricker's and Crockett & Jones also have factory stores in Northampton.
Ceramics and homeware
Invest in Staffordshire ceramics to pick up classic pieces of quintessential English diningware and you'll also be helping an age-old local tradition which is struggling through the credit crunch.
Three weeks ago, china maker Spode and its sister company Royal Worcester collapsed into administration, and last month, Waterford Wedgwood (which owns the Royal Doulton, Waterford Crystal and Wedgwood brands) announced more job cuts at its plants in Stoke-on-Trent.
Emma Bridgewater, Portmeirion Potteries, Royal Stafford and Moorland Pottery are among the remaining pottery factories in Stoke-on-Trent.
If you can't afford the full price right now, all have factory shops in the town where you can pick up current pieces and discontinued ranges for less.
'The quality and individuality of our industry in the UK is outstanding,' says Emma Bridgewater. 'It worries me that this might be a dying skill, but as long as we keep growing, we will be able to sustain it.'
For furniture, DFS makes its sofas in Britain and has three factories in Yorkshire, Nottinghamshire and Derbyshire, while Marks & Spencer's made-to-order upholstered furniture is largely produced at its own 'eco-factory' in Wales.
While many electrical products are now made overseas, some are still produced here. Dualit has been making all its Vario toasters in Britain for 60 years and has its own factory in Crawley. The toasters start at £133.
Bicycles
According to Sainsbury's Bank, more than three million commuters have now abandoned their cars and started to cycle to work, both to save money and help the environment. But if you want to be kind to the economy as well, you could consider a Brompton bike.
Brompton Bicycles, famous for its folding bikes, is one of the few companies to keep all its manufacturing in England - it has had a factory in Middlesex for the past 30 years and you can ride off on one of its bikes from around £575.
A spokesman for Brompton says: 'Most companies make their bikes in Asia, but we would never consider making them abroad because we want to stay British and we feel the quality is better here.'
Chocolate
Cadbury, one of the best-known British brands, has been making chocolate in Bournville, Birmingham, since 1879. But last year it announced that it would close one of its factories, near Bristol, and shift some operations to Poland. A Cadbury spokesman said: 'It makes better business sense to transfer some production to Poland, but Bournville is Cadbury's spiritual home.' Most chocolates will still be made in Bournville but individual bars will be made in Poland.
Old-fashioned sweet shops might now be rare, but you can still get humbugs from Marks & Spencer, which uses a traditional confectioner in Yorkshire to make its boiled sweets. And the store's artisan chocolate range, which includes the Chocolate Tapas selection (£9.99), is also made in Britain.
Meanwhile, Prestat has been making and selling chocolate since 1902, and the company still uses its original recipes at its North London factory, which employs 30 people. The company has just invested £250,000 on a bar wrapping machine so that it could keep production in the UK.
Bill Keeling, managing director of Prestat, says: 'We consider ourselves to be a very English company and believe wholeheartedly in English production as being at the core of the company. Too many bars sold to UK consumers by iconic brands are being made abroad - it's utterly unnecessary. We aren't in the business of cutting costs to the bone at the expense of quality.'
- Consumer affairs
- Consumer spending
- Retail industry
- High street retailers
- Credit crunch
- Cadbury
- Recession
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