A spokesman for the Department for Business, Innovation and Skills (BIS) said the GLA remained under scrutiny as part of its wider, ongoing, Workplace Rights Compliance and Enforcement review. "The review is looking at the enforcement regime as a whole, so that would include finance," he told Food Manufacture, when asked whether it would include budgetary issues.
A spokesman for the Department for Environment, Food and Rural Affairs (DEFRA) denied rumours that responsibility for the GLA would shift to BIS, but added: "BIS's review is considering other possible models of compliance and enforcement."
In a recent blog, Awale Olad, parliamentary liaison officer for the Migrants' Rights Network, said: "Insiders say what is likely to happen is the GLA will remain as a body but will be subjected to a significant cut in funding and substantially reduced in capacity."
Mark Mitchell, chief executive of recruitment firm Meridien Business Support, said: "It is very unlikely the government will abolish the GLA, but it could sideline it and take away its funding." He feared food manufacturers, which are under pressure in the recession, could be more tempted to cut corners if the GLA's influence waned.
Anxiety also persists about widening the GLA's remit to include enforcing employment standards in the construction industry if its resources are not increased. "If its remit increased, I would have a concern about whether it would be as focused on agriculture and the food chain," said a spokesman for the National Farmers' Union.
The proposal is included in the Gangmasters Licensing (Extension to Construction) Bill, which has its second reading in Parliament on January 20, 2012.
Fresh Produce Consortium (FPC) chief executive Nigel Jenney said: "We would assist in any review of its resourcing and priorities to ensure it continues to operate effectively and efficiently to meet its statutory objectives."
Association of Labour Providers director David Camp allayed fears, citing Lord Taylor of Holbeach's comments in the House of Lords last month. "I have made it clear that DEFRA values the GLA and sees it as a particular responsibility to see that it is properly funded," said Taylor. "Not only is its budget protected this year, it is protected for the next four financial years in its enforcement activities."