The new Labour government will focus more on the food and drink industry than the outgoing Tories, a new report by economists at the IGD has claimed.
The report, called ‘New government, new direction?’, says Keir Starmer and his team will bring in policies to tackle the “everyday” economy, with a raft of measures included in the administration’s first 100 days set to set out its stall.
“The previous government chose to focus economic development on sectors such as technology and services, with food and grocery receiving less attention,” says the report. It adds the new focus could give the industry a chance to “engage more effectively” with ministers.
The IGD report says key policies will include Labour’s mooted New Deal for Working People, to be overseen by deputy prime minister Angela Rayner. “There is a raft of policies that if introduced will have a significant impact on the food system,” it says.
Labour’s plans, many of which will be unveiled in tomorrow King’s Speech, include ending so-called ‘fire and re-hire’ practices, banning “exploitative” zero-hours contracts and introducing basic employment rights of protection, such as unfair dismissal, parental leave and sick pay, from day one of employment.
“Additional new legislation will be passed to force government departments to draw up skills improvement plans in high-migration sectors to bring down reliance on migration,” says the IGD. “This is likely to impact the food and consumer goods industry, certain parts of which remain heavily reliant on migrant labour.”
The new government has committed to resetting the skills agenda. It will change the existing Apprenticeship Levy and create a new Growth & Skills Levy, allowing employers to use up to half of levy funds for non-apprenticeship training.
In its manifesto, Labour also recognised that food security had a huge impact on national security. It pledged to support UK production while protecting the environment, including plans to set a target for half of all food purchased across the public sector to be UK produced or certified to higher environmental standards.
The new government has committed to introducing the long-awaited land use framework and will re-assess the current Environmental Land Management scheme to ensure it works for UK farmers and supports the restoration of nature.
Naomi Kissman, social impact director at IGD, said: “Our food system is critical to our UK economy and to driving growth. However, as we experience greater impacts of a changing climate and ongoing geopolitical uncertainty, it is also facing a period of far greater risk. Therefore, it’s encouraging to hear the new government is prioritising boosting food security. There is a huge opportunity for businesses and policymakers to work in partnership to deliver a more resilient, sustainable and economically successful UK food system.”
IGD chief economist James Walton added: “The UK will not return to a pre-crisis economy for some time. But the food system has a huge role to play in supporting economic resilience, growing GDP and providing jobs in our local communities.”
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