Government has a lot on its plate – food price inflation driven by the Iran conflict as well as the Russia-Ukraine war and stalling economic growth, plus the ongoing UK-EU SPS talks, for example.
Doubts over prime minister Keir Starmer’s continued tenure and cuts in staffing in the Department for Business and Trade (DBT) and Defra don’t help in the middle of all this. The timing could not be worse.
The Government has also been under pressure to tackle the cost-of-living crisis, with food inflation predicted to rise to 9%-10% by the end of 2026.
One can understand, therefore, the temptation to act first and build in the detail later. The Labour Cabinet needs to be seen to be doing something.
But the challenge for the Government is that it needs always to be on top of the detail and its communication when it takes decisive action. If the closing weeks of May were anything to go by, the signs are not great.
Businesses need certainty
Government held a couple of online events for industry to cue up the latest announcement on SPS negotiations in the last week of May. So far, so good. Except that it transpired that key trade associations and contacts – even some of those that had signed up to receive relevant updates – were left off the invitation list.
When the heralded announcement was made on 28th May, it filled in some details, while leaving others unclear. Businesses need certainty and highlighting areas of food law that have diverged from EU regulation but failing to identify all the differences creates more questions than answers.
As I write, talks were still in process, and the Government was sticking to its deadline of “the summer” for their conclusion and the announcement of what it all means. The Guardian and one or two other titles were speculating that the summit unveiling the agreement would occur on 13th July, but methinks they may be mixing up their events. We shall see.
Tangled messages leave industry scratching their heads
Meantime, bright sparks in various policy departments were working overtime on ideas to prop up the economy and help cash-strapped consumers afford their grocery bills.
First, we heard news that the Government had suggested the suspension of tariffs on a range of food imports, including fresh fruit, fruit juice and tuna. Then, we heard about tariff suspensions on more than 100 products. Did these include the first lot of zero tariff proposals or were they in addition to them? What products were they exactly? The press heard before industry, but only some of the press.
When the second list of 125 items was published, it included foods such as olives and olive oil, fonio (a sort of wild rice), avocados and green tea. As was wryly observed on Radio 4, how the Government thinks suspension of tariffs on these items is going to make a difference to the average working family is hard to fathom.
In addition, as PTF members have eloquently put it, what’s the first thing your customers are going to say once they learn tariffs have been temporarily scrapped on a food you are supplying? Tariff suspensions don’t necessarily mean food processors see any benefit once prices on shelf have been negotiated.
Finally, we discover that the second list and the first list are separate. While there will be consultation with industry on the last group of products, culminating at midnight on 24th June, the first is seemingly non-negotiable. It’s unclear how the initial tranche of foods was put together.
The willingness to communicate is good, but a little information without detail or context spells confusion and, possibly, unintended consequences.
The Provision Trade Federation (PTF) is a food trade association representing processing, manufacturing and trading companies. Rod Addy has extensive communications experience having worked on food trade press publications for more than 20 years. As director general of the PTF he has responsibility for the overall direction and strategy of the organisation.
