Andy Burnham has marked his arrival as PM with a new-look cabinet that sources said would spark a major debate over food prices and how to tackle food insecurity.
The former Manchester mayor, who has set his stall out to tackle inequalities and spread wealth from London, has appointed Angela Eagle as the new environment secretary at Defra. She will take over from her former boss Emma Reynolds, who in the ministerial roundabout returns to her previous department as chief secretary to The Treasury.
Eagle’s return to the department comes with Burnham promising the “biggest changes in the last 40 years” to British politics. He pledged to deliver a 10-year “new plan for Britain” later this year.
Reynolds’ arrival at Defra last year, along with Eagle as farming minister, came with speculation that they would bring a new emphasis on food industry growth. However, progress, according to sources, has stalled amid negotiations with the EU over a realignment on food regulation and border issues, which has swamped government departments including Defra.
The government’s relations with the food industry have also been soured by the conflict in the Middle East and calls for ministers to reduce the burden of existing and planned regulation on the environment and health.
While the strategy was being led by the DHSC, in her role as farming minister Eagle was one of the strongest supporters of the shift to a new nutrient profiling model (NPM) proposed under Wes Streeting’s 10-year plan for the NHS.
She had strongly defended the move to a new model in talks with industry on the Food Strategy Advisory Board, which she also previously chaired and will now run.
Eagle has been a vocal supporter of plans to intervene to tackle food poverty in the worst-hit parts of the UK, with her recently interrupted period at Defra characterised by a focus on government interventions in those areas with the worst food poverty.
In May, The Grocer revealed Defra was planning a series of “hyper-local” interventions, backed by supermarkets and other industry sectors, to tackle UK poverty hotspots, in a long-awaited first step for its food strategy.
Eagle said she wanted to “seize opportunities” to provide support for the poorest families.
“I expect we’ll hear more about Good Food Neighbourhoods, food redistribution and surplus, and keeping prices as competitive as possible to help ease the cost of living,” said one leading retail source.
“Retailers are investing hugely in keeping prices low – but bringing down the soaring cost of doing business is where government should focus its fire if it wants to see price inflation easing.
“The food industry needs Defra to fight across Whitehall for pro-growth, sensible regulation and joined-up approaches to boost food security and tackle the nation’s challenges, ending the scattergun approach that characterised the previous administration.
“Proper strategy, well thought-through and realistic delivery plans, and working hand in glove with the food industry would bring the change that’s needed.”
However, farming groups said they hoped Burnham’s new cabinet and Eagle’s return to Defra would provide a chance for a “rest” after a troubled relationship with the government under Keir Starmer.
Liz Webster, founder of Save British Farming, said: “Emma Reynolds always seemed more naturally aligned to an economic brief, so her move to the Treasury makes sense.
“Angela Eagle inherits a department facing enormous challenges. Food security is becoming one of the defining issues for governments, with global tensions disrupting fertiliser markets following the US-Iran conflict.
“There is an opportunity for a fresh start, but rebuilding trust with farmers will require more than listening exercises. It will require policies that recognise food production as a strategic national priority.
Former NFU boss Minette Batters, whose landmark report last year on the problems facing farmers and UK production is expected to continue to influence policy, added: “It’s a shame Emma has been moved on but I’m pleased that Angela has been appointed and I very much hope she will now deliver on the actions in the farm profitability review.
“Farming is at a crossroads: rising costs and climate change means farm overdrafts are rising fast and many will be wondering about the business viability of growing crops for next year.”
Meanwhile, long-time Burnham ally Yvette Cooper is also set to play a big role in relations with the food industry as the new health secretary.
A source told The Grocer: “The PM has talked about becoming a prevention nation – preventing unemployment, preventing health problems before they scar lives.
“We hope that Cooper will take on this brief with a recognition of the positive role that the food & drink industry can play in providing opportunities for young people.”
However, health campaigners hope the arrival of Burnham will see the government switch to the new NPM, which would reclassify thousands of products as HFSS.
He is also facing calls to clamp down on ”loopholes” in the government’s recently introduced junk food advertising restrictions, which Burnham was one of the first prominent politicians to back, as shadow health secretary under Ed Miliband.
Elsewhere in the shake-up Burnham sprang a surprise by making John Healey, the former defence secretary, the new Chancellor.
Wes Streeting, who stood down earlier this year as health secretary, takes over Healey’s old role in defence.
Burnham has also brought back Jonathan Reynolds as secretary of state for Business, Innovation, Science & Trade in an expanded role after he lost his position as business minister to Peter Kyle in a the previous reshuffle under Starmer.
Retail and food manufacturing bosses are hoping Burnham’s focus on jobs for young people may see him agree to lift some of the regulation imposed since Rachel Reeves’ infamous 2024 budget.
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