A week since the referendum result and still the shockwaves continue. As Andrew Rawnsley so wisely wrote in The Observer, we have only so far done the easy bit. It has become evident that not only did the Remain camp have no ‘plan B’ but the Leave side had no plan at all.
I am heartbroken by the result, but my personal feelings are less important than the challenge now faced by the industry: to show leadership through these troubled times.
Some have said business was too quiet or cautious about what we wanted before the referendum. Whether or not that’s true, we cannot afford to be quiet now. Those who negotiate our post-EU settlement must be in no doubt about what the food and drink industry requires to guarantee its future success.
I was able to start that process on Wednesday at the business leaders’ roundtable convened by business secretary Sajid Javid. The mood was sombre, but there’s widespread agreement on some key themes.
We must do much more to protect and reassure the citizens of other EU nations in our workforce who are scarred by the xenophobia of some parties on the Leave side. We are also pushing UK government to secure a new migration policy that ensures continued access to EU workers. We must not lose sight of the critical work on productivity and maintaining the talent pipeline that Sir Charlie Mayfield is about to publish and which FDF president Dame Fiona Kendrick of Nestlé UK has led for the food and drink sector.
Government should rethink or at least delay all its measures that impose any extra burdens - like the proposed apprenticeship levy and sugary drinks levy - on business at a time of such economic fragility. Regulatory stability and predictability is essential.
A comprehensive UK-EU trade agreement that ensures continued tariff-free access to key raw materials and export markets is critical. We very much welcome Sajid Javid’s commitment to this as his top priority.
One other major watch-out across our industry is the potential impact on company investment of the vote to leave. Food and drink suppliers self-fund three quarters of R&D. The UK is at the heart of many companies’ R&D operations. We therefore need the UK government to step up quickly to explain what will happen to companies whose research utilises long-term EU grants.
On regulation, the stark fact is that until you’re out, you’re in. So all current and ‘in the pipeline’ regulations, whether on food safety, labelling or health and safety will apply to UK business until the day we exit. However, there is no reason why the negotiation that follows the triggering of Article 50 should not include more flexibility over implementation for new regulations.
The Chancellor told us this week that Britain and its people are going to be significantly poorer as a consequence of this decision. Taxes will rise and household incomes will fall in real terms. We all face several months, perhaps years, of inevitable instability. The government and the Bank of England, can, though, stabilise the economy and ensure business confidence.
FDF will continue to be a strong, clear voice arguing the case for food & drink and acting to protect its competitiveness. Long-term growth can return, but for it do so the right decisions need to be taken now to ensure we continue to nurture and build our competitiveness and innovation, skills and productivity.
Ian Wright is director general of the Food & Drink Federation
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