The new Labour government’s pledge to “work with food businesses” grows more unconvincing with every passing day. As the backlash from Rachel Reeves’ budget continues, over 10,000 farmers gathered in their Westminster to protest this week, and they’ve vowed to keep fighting whether that’s through the militant measures that some farmers are threatening, or the more sophisticated and intelligent approach adopted by the NFU, which has consulted this week with former Treasury and Office for Budget Responsibility economist to inform new analysis. 

But it’s not just farmers. There is equal fury among retailers over the damage to jobs and growth from the estimated £7bn in extra employee costs they’re facing from employee National Insurance contributions and minimum wage hikes,  while supermarket requests to review business rates to level the playing field with online has come back to bite them. So much for Labour’s pre-election schmoozing. 

And what about manufacturers? The stance to date has been diplomatic, with Defra secretary Steve Reed politely asked at an FDF investment summit this week to introduce measures to help attract investment, boost skills and unleash modern technology via food’s inclusion under ‘advanced engineering’ in Labour’s new industrial strategy. And that’s partly because the impact of NIC and minimum wage increases is less acute, though coupled with the looming introduction of costly new regulations such as the Extended Producer Responsibility scheme, and the extension of the soft drinks sugar levy, there is a significant cumulative effect building. 

Reed’s response was equally placatory: he insisted the government was “listening” to the food and drink industry (including farmers) on his first industry appearance. But as The Grocer revealed this week, ministers shelved plans to announce this week a new National Food Strategy.

We’ve been waiting with bated breath for any signs of a plan – over and above tax raids to fill the £22bn black hole in the public finances we are reminded of every day, of course – to tackle food issues in all their myriad forms. So it’s easy to see why ministers thought better, with thousands of angry farmers on the march, of bringing out what sounds like punitive plans – with measures understood to include cutting emissions from red meat, and a potential future crackdown on processed foods. 

And the spirit of collaboration will be further undermined by separate plans to open up the Food Data Transparency Partnership to consumer group scrutiny, while the Food & Drink Sector Council has been stripped of its advisory role. 

With campaign groups set to have a bigger say in the FDTP, calling for regulation and new taxes, despite the obvious impact on food prices, Reed’s promises will face a very early test.

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