Food & Drink Wholesale UK (FWD) has welcomed reports that the Chancellor has ruled out further business rate increases for large warehouses in the upcoming budget, but warned depots continue to face crippling property costs.
It comes as Chancellor John Healey is reported to have ruled out a warehouse tax at the weekend following a backlash from retail bosses including John Lewis chairman Jason Tarry over escalating overheads – echoing warnings also championed by the FWD.
The trade body has stated, however, its broader position “remains unchanged”, with current property rates on wholesalers still piling pressure on an “essential food supply infrastructure” that supports almost 1.5 million jobs and contributes £57bn per year to the UK economy.
Wholesalers already face a higher business rates multiplier on properties with a rateable value above £500,000 and any additional costs would ultimately feed down the supply chain, hitting independent shops, pubs, restaurants, schools, hospitals and care homes across the UK, it said.
“Wholesale depots are not simply warehouses,” said FWD head of external affairs Lyndsey Cambridge-Wilson. “We therefore want to see wholesale depots protected from future increases and given the same consideration as the retail and hospitality businesses they support.”
FWD has launched a five-point plan urging government ahead of the budget to take action that will keep food affordable, support British businesses, and unlock economic opportunities.
These points include: protect essential wholesale depots from unintended business rates increase, use public procurement to back British food and local suppliers, make wholesale and logistics a route into good work, cut food and packaging waste without adding avoidable cost, and keep the cost of moving food down while accelerating cleaner fleets.
FWD CEO James Bielby said: “The government is right to focus on giving families breathing space, backing British businesses and creating opportunities for young people. Food and drink wholesalers have a vital role to play in delivering those ambitions.
“Our sector keeps food moving to schools, hospitals, care homes, independent shops and hospitality businesses in every part of the country. But when the cost of operating depots, transporting goods or complying with regulation rises, those pressures are felt throughout the supply chain.
”That is why we are calling for practical action to protect essential wholesale infrastructure, support British suppliers and create new routes into skilled employment.
“Our five-point plan offers practical solutions, and FWD and its members stand ready to work with ministers, mayors and officials to turn them into action.”
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