Updated · Scottish Grocer and Convenience Retailer · Aug 21
UK Food Makers Urge Burnham to Act as 88% Say Conditions Worsened
Updated
Updated · Scottish Grocer and Convenience Retailer · Aug 21
UK Food Makers Urge Burnham to Act as 88% Say Conditions Worsened
3 articles · Updated · Scottish Grocer and Convenience Retailer · Aug 21
Summary
88% of UK food and drink manufacturers told the Food and Drink Federation that business conditions have deteriorated since Labour took power, prompting an appeal to Prime Minister Andy Burnham for urgent support before his first Budget.
3.8% average production-cost growth over the past 12 months has squeezed margins, while 72% of manufacturers now expect to raise consumer prices as firms struggle to absorb higher bills.
More than a third of manufacturers said Middle East conflict lifted costs by 5%-10%, leaving the sector more exposed to external shocks alongside policy uncertainty and extreme weather pressures.
75% of businesses — including 91% of SMEs — want labour costs kept from rising faster than inflation; 56% seek lower energy costs and 50% want an SPS deal to cut EU trade friction.
The industry group says those steps are needed to restore confidence, protect food security and make the sector more resilient and competitive.