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UK Food and Drink Firms Urge Government to Eliminate ‘Roadblocks’ to Growth

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Courtesy of Envato

Government Urged to Clear Barriers for UK Food Industry Growth

Manufacturers Call for Immediate Policy Action

UK food industry growth faces increasing challenges as manufacturers urge the government to remove barriers to sustainable development.
The Food and Drink Federation (FDF) released its Powering Communities report, showing sector growth of 17.9% over the past decade.
This vital industry now contributes £37 billion annually, making up 24.2% of the total UK manufacturing turnover.

Moreover, the sector supports nearly 486,500 jobs across 12,195 businesses, underscoring its critical role in regional and national economies.
Since 2018, food and drink manufacturing added 41,000 jobs, with business numbers rising 14% between 2019 and 2024.
Clearly, the industry remains a key driver of UK food industry growth and broader economic resilience.

Confidence Drops Despite Positive Indicators

However, the latest State of Industry report reveals confidence fell to -47% in Q4 2024 due to growing economic pressure.
Inflation, trade barriers, and the pending Extended Producer Responsibility (EPR) fees all contribute to this steep decline.
Manufacturers say that these challenges hinder innovation, reduce export volumes, and limit access to skilled workers.

Six Key Policy Requests

The FDF urges government to deliver targeted reforms to secure the industry’s future and stimulate UK food industry growth further.
Their demands include securing more R&D investment, co-creating a skills strategy with Skills England, and simplifying tax credit systems.
They also request ringfencing EPR costs, streamlining trade with the EU, and cutting unnecessary regulatory red tape.

Industry Leaders Stress Sector Importance

Jim Bligh of the FDF emphasized the sector’s importance to national food security, careers, and international trade development.
He noted that the government must act now to protect this foundational industry from long-term stagnation and reduced competitiveness.
With the right policy support, food and drink firms can continue to create jobs and fuel economic progress across all UK communities.

Time for Strategic Collaboration

By partnering with industry leaders, the government can unlock further innovation, boost exports, and strengthen local food systems.
A renewed commitment to collaboration will drive long-term productivity and competitiveness in this vital national sector.
Addressing roadblocks today ensures a stronger, more resilient food and drink industry for the UK’s future generations.

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