FDF director general Ian Wright welcomed government pledges set out on Wednesday (May 18) to support business and make the UK a more competitive economy.
“Improving productivity in UK food and drink manufacturing – which adds £22bn annually to the Exchequer, supports 400,000 jobs directly, and feeds millions everyday should be a shared national priority,” said Wright.
Increasing regulatory costs
Continuing to invest, innovate and create highly skilled jobs and apprenticeships, depended on managing the increasing regulatory costs and reporting obligations faced by manufacturers. “We hope the Better Markets Bill will achieve that,” said Wright.
The FDF boss said the sector could make a big contribution to achieving government’s ambition to create a Northern Powerhouse. “For example, Yorkshire and the Humber’s 800 plus food and drink manufacturers achieve a turnover of £10bn alone, the highest of all English regions.”
Also, the Higher Education and Research Bill had the potential to bring far-reaching change to the nation’s university sector. “We welcome all efforts to encourage universities to focus on innovation and work collaboratively with industry,” said Wright.
The partnership between the food and drink industry and Sheffield Hallam University to develop a Centre of Excellence in Food Engineering was said to be a great example of this this collaborative approach in practice.
Continued to draw flak
But the Soft Drinks Industry Levy, due to be included in the 2017 Finance Bill, continued to draw flak from the FDF. The new levy on producers of drinks with added sugar content was due to come into force in April 2018.
Wright said: “The case for a soft drinks levy looks no stronger today than when it was first announced in March this year.”
Steady reformulation – to take fat, salt and sugars out of foods and drinks – and portion control were the most effective policy interventions, he said.
“The industry remains committed to building on the good progress that has been made. Obesity will only be beaten by a national partnership involving government, the National Health Service and health professionals, schools, retailers, restaurants and food and drink manufacturers.”
Soft drinks manufacturers have taken “huge steps” to remove 8% of sugar and 7% out of the category since 2012, based on the British Soft Drinks Association Annual Report 2015, according to the FDF.
What others said about the Queen’s Speech
EEF, the manufacturers’ organisation, chief executive Terry Scuoler
- Digital Economy Bill: “As manufacturers seek to take advantage of the technologies that will drive a fourth industrial revolution it is critical that government acts to ensure that businesses have access to world class digital infrastructure. This Bill will lay the groundwork to ensure that businesses have access to more cost effective and more reliable and resilient digital infrastructure than at present. A specific universal service obligation for businesses is central to this ambition.”
- Higher Education and Research Bill: “Government is right to focus on driving quality of teaching if the UK’s position as a global leader in higher education is to be retained. This Bill will provide an important focus on Student outcomes and learning gain, which is of particular importance to employers. The new teaching excellence framework should, therefore, be heavily weighted towards this. Employers will put their full support to the government’s wider plans to publish employment outcomes and earnings data of graduates.”
Confederation of British Industry, deputy director-general Josh Hardie
- “Prioritising the digital revolution, which is transforming the face of modern business, is a key step to propelling the UK’s productivity. Ensuring that broadband reaches all corners of the country will breed a new generation of companies in an increasingly competitive environment.
- “We are already working closely with the government on ensuring higher education gives students the best opportunities and skills, and on the devolution of business rates to drive regional growth. Further action to improve offender rehabilitation is an area where business will look forward to working with the government.”