Food industry bosses have warned its £37bn contribution to the UK economy is at risk unless ministers take “decisive action” to invest in the sector.
A new report by the FDF, based on the latest ONS data, today reveals the sector has grown by 17.9% over the past decade and now accounts for almost a quarter (24.2%) of total UK manufacturing turnover.
The Powering Communities report highlights the economic contribution of the industry stretching across every region of the UK. It says the sector is responsible for almost a third (30.8%) of total gross manufacturing value added investment in Scotland, and a fifth in the East Midlands (20.6%) and Northern Ireland (20.2%).
However, last month a survey by the federation showed a “drastic” fall in business confidence in the sector, with government taxation and regulation largely blamed.
It said the huge contribution of the industry showed how vital it was for ministers to act to tackle barriers to growth, including low investment in innovation, falling food and drink export volumes, and lack of access to highly skilled workers.
It also launched a list of 40 actions it wants the government o introduce to unlock investment. These include a massive increase in R&D funding for the food sector, introducing a workforce and skills plan, and providing tax incentives for companies to invest in innovation.
“Our industry is vital to ensuring we have a thriving food system here in the UK, providing high-quality, affordable food,” said Jim Bligh, FDF director of corporate affairs, communications and packaging.
“We are a major part of the UK’s wider manufacturing sector, offering good careers, driving investment, and promoting international trade. Food and drink manufacturing is uniquely placed to make a positive impact in every village, town and city in every constituency in the country.
“But with food and drink businesses under increasing pressure, we’ve reached a pivotal moment where government must act to safeguard this foundational sector’s future growth and the UK’s food security.
“We’ve set out more than 40 steps government can take to remove unnecessary roadblocks to growth for the benefit of every community in the UK.”
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