Environment secretary Emma Reynolds will today pledge to UK food leaders that growth is the government’s key priority for the sector, as she attends an investment summit in London on the back of a poll showing a drastic fall in business confidence.
Reynolds will stress that the government will back its words with action, with moves to slash red tape and industry costs.
The FDF’s Investment Summit in London today will see representation from the likes of Associated British Foods, Carlsberg Britvic, Danone, Mondelez International, Nestlé UK, Nomad Foods, Premier Foods, Princes Group, Suntory Beverage & Food, and Tate & Lyle Sugars.
The Federation is urging ministers to get behind its vision for the sector, setting out its priorities including doubling annual business investment from £5.8bn to £12bn, growing exports to £35bn, and unlocking what it calls a £14bn opportunity in technology.
It is also calling for the government to make the UK a global hub for healthier product innovation and food and drink R&D, and moves to drive investment in the circular economy.
However, today’s summit comes with The Grocer revealing earlier this month that an FDF poll of members showed confidence among food and drink manufacturers had plummeted to its lowest level since the Covid pandemic, ahead of Rachel Reeves’ looming budget.
The third-quarter survey revealed 90% of firms felt pessimistic or nervous about what lay in store in the upcoming budget. Almost as many said they feared it could bring additional taxes and business costs, after last year’s controversial budget heaped huge costs on the industry.
The FDF said with rising costs, regulatory pressures and uncertainty, weak consumer demand, and increasing competition from abroad, it was vital the government acted to unleash the untapped potential of the sector.
Speaking prior to the event, Reynolds said: “The food and drink sector is at the heart of Britain’s economy, contributing £37bn and employing nearly half a million people across the country. We’re backing this vital industry with action.
“We’ve launched our Good Food Cycle in partnership with industry to create the conditions for the food sector to thrive and grow sustainably, including investment in innovation and productivity, and are negotiating an SPS agreement with the EU to cut red tape and costs.
“Kickstarting growth is the government’s number one mission, and we’re determined to make the UK the best place in Europe to make and export food and drink.”
FDF CEO Karen Betts said: “Food and drink manufacturing is the backbone of the UK’s ‘everyday economy’. We contribute £37bn to the economy, employ half a million people, and export nearly £25bn of British products loved around the world.
“But our industry can and should do so much more. We need to grow our investment in technology, environmental sustainability, and healthier products, to better serve the UK’s growing population and maintain our competitiveness. But to do that, we need a stronger partnership with the whole of government, with clear, agreed aims, which create the conditions and the confidence for companies to invest.”
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