Government may think again on FSA

The Government has indicated that it is willing to reconsider the proposed flat-rate levy on caterers and food retailers to fund the creation of the new Food Standards Agency.

Speaking in Parliament last week, Prime Minister Tony Blair said: "We proposed the idea originally because we thought that it would be much simpler and easier to administer than a graduated charge. However, that is one of the things that the consultation paper will address."

Small catering firms and food stores have protested that it is unfair to expect them to pay the same rate as multiples and international operations.

The draft bill makes it clear that the proposed annual levy of £90 per outlet was based on an estimated 490,000 firms that were liable to be charged. This figure could move up or down, depending on the actual number of businesses.