Wholesalers are asking prime minister Keir Starmer for a meeting in order to discuss their fears over the negative impact of the recent budget on the food and drink sector.
The Federation of Wholesale Distributors, along with some of its biggest wholesaler and buying group members, has written to the PM expressing “grave concerns” over measures such as the increases to employers’ National Insurance contributions and the national minimum wage. The combination of these is expected to cost wholesalers an additional £141m per annum, according to the trade body.
The letter to Starmer was written by FWD CEO James Bielby and co-signed by 16 of its members, including Booker Group CEO Andrew Yaxley and the bosses of Bestway, Bidfood and Sysco GB, as well as leading buying groups Unitas Wholesale, Confex, Country Range Group and Fairway Foodservice.
“Our members contribute significantly to the UK economy, with annual revenues reaching £36bn,” said Bielby. “They also directly employ 60,000 people and add an impressive £3bn of gross value to the UK economy each year.
“The scale of our sector’s contribution highlights its significance in powering the government’s mission to kickstart economic growth – which we wholeheartedly support.
“However, the tax increases announced in the budget will have the opposite effect, compounding spiralling costs and undermining our critical sector. I would welcome the opportunity to meet with the government to discuss our concerns so that we may identify solutions to mitigate the damaging impact the budget’s measures will have on the critical supply of high-quality food and drink across our country.”
Bielby also warned of unintended consequences of the government’s planned changes to business rates, which could see large food and drink wholesalers hit by extra fees which were meant to apply to online retail giants.
“The government’s stated intention to reform business rates by permanently lowering multipliers for retail, hospitality and leisure (RHL) properties with a rateable value (RV) under £500,000 from April 2026-27 is proposed to be funded by a higher multiplier on properties with RV of £500,000 and above.
“This includes the majority of large distribution warehouses. While the rationale behind this change may be to tax the warehouses of online giants, it is essential to ensure there is a way of differentiating them with business-to-business food and drink wholesalers who were not the intended targets of this change and play a vital role in feeding the nation.”
He finished the letter by adding: “Our members would welcome the opportunity to meet with you and your team to discuss our concerns so that we may identify solutions to mitigate the damaging impact the budget’s measures will have on the critical supply of high-quality food and drink across our country.”
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