The Food and Drink Federation (FDF) has released a report suggesting that Government “needs to do more” to help the UK’s largest manufacturing sector to attract “vital” investment.
FDF said the report reveals that food and drink manufacturers “underpin the UK’s manufacturing strength across all regions and nations”, contributing over £35 billion in gross value added (GVA) while providing a “strong platform” for skilled jobs everywhere.
The food body stated that “critical investment” in the sector had seen a “sustained decline” over the last few years. It said that ONS data showed that over the year to Q3 2023, investment was down 33.2% compared to the same period in 2019, contrasting with the UK as a whole where investment rose by 5.4%.
“This threatens growth and food security in the medium and longer term,” said the FDF. “The Government needs to act now to create the circumstances for further investment and sustained growth.”
Ahead of the Spring Budget, the FDF called on Government to work with the food sector to agree long-term policies to foster “vital” private investment, which it said would “unlock further productivity growth” while boosting exports and securing the future of the food and drink sector in the UK.
The FDF said this should include a formal food and drink innovation partnership and financial incentives through a Food and Drink Manufacturing Transformation Fund to “expedite the adoption of automation and digital technology”.
Investment needed to “remain a powerhouse”
Karen Betts, chief executive of the FDF, said: “This report sets out how critical a thriving food and drink manufacturing sector is to the UK’s broader economy, as well as to everyone’s daily lives. Unlike many industries, ours is spread evenly across the country, with regions of real strength like the Midlands, North of England, Scotland’s central belt and South Wales, where we provide good jobs and great careers in big companies and small.
“But the Government should not take our industry for granted. Our sector urgently needs investment – in science, innovation, automation and new technologies – if it’s to remain the powerhouse that our country needs it to be in the future.
“We need a strategic approach from Government looking at attracting new investment and building productivity – to set the conditions for success into the next decade. Government must also look at how we are regulated – muddled regulation, like ‘not for EU’ labelling, a poorly functioning Apprenticeship Levy or badly executed packaging recycling reforms, is deterring investment and will damage local prosperity.”
