The King’s Speech will cost the food industry tens of millions, but it’s been broadly welcomed. Why?

’New government, new direction?’ is the title of a new IGD report and this week’s King’s Speech already makes clear that Keir Starmer’s Labour Party will create new opportunities – and pose major new threats – for the food and drink industry.

Some plans are clearly adopting Tory proposals, such as the Tobacco & Vapes Bill. The new Crime & Policing Bill promises an almost identical but nonetheless welcome crackdown on retail crime. It’s also dusted down the pre-watershed advertising ban on HFSS food and drink that ex-PM Boris Johnson pulled the plug on. It’s even rumoured to be signing up ex-Defra ‘food tsar’ Henry Dimbleby to oversee its food policy.

But there are distinct differences, especially when it comes to working practices. The Employment Rights Bill promises to ban “exploitative zero-hour contracts”, which surely spells bad news for Deliveroo and the few remaining rapid delivery operators;  while “ending the scourge of ‘fire and rehire’ practices” has even wider implications (given its adoption in the past by the likes of Asda, Sainsbury’s, Tesco, Weetabix and Jacobs Douwe Egberts, among others). All workers will also be offered sick pay, protection from unfair dismissal and the right to flexible working from day one – though surely the most expensive change will be the removal of age bands for the minimum wage.

Yet the industry has broadly welcomed the King’s Speech, accompanied as it’s been by bills to reform the apprenticeship levy and planning laws (albeit with no mention of business rates reform). That’s because it recognises the quid pro quo nature of the deal it’s offering, trusting firstly that the new government will consult properly with business as it has promised, and is also encouraged by Labour’s focus on growth, investment in innovation (including the clean energy transition), and collaboration with the EU. 

Above all, the King’s Speech feels much more food-focused than anything that has come before. As the IGD says: “The previous government chose to focus economic development on sectors such as technology and services, with food and grocery receiving less attention.” That offers hope as well as trepidation.