Support the UK's 12,000 food & drink manufacturers keep food prices low, create skilled jobs and bring prosperity to every postcode
Food and drink is the only manufacturing sector with a significant footprint in every nation and region of the UK. Investment in our sector creates jobs, drives prosperity in local communities, helps households with the cost of living, strengthens regional supply chains, and improves national resilience. As the UK Government seeks to deliver growth across the country, food and drink manufacturing offers an immediate opportunity to deliver local economic outcomes at a national level.
We want to work with government to strengthen food security, support jobs and unlock investment while helping keep food affordable for consumers.
Read FDF's full budget submission
Exclusive to FDF members only. If you're not an FDF member, please email Parliament@fdf.org.uk to read the full submission.
1. Cutting energy costs
Food manufacturers work unremittingly in a competitive market to keep food affordable for UK households. However, production costs have risen rapidly since January 2020, driven significantly by high energy prices.
Energy is essential at every stage of the food and drink supply chain, from agricultural production and ingredient processing to manufacturing, cold storage and transport.
Government should include food and drink manufacturers in BICS (British Industrial Competitiveness Scheme), introduce a Targeted Electrification Discount and move electricity levies from bills to government spending.
2. Stopping regulatory churn
In 2025 alone, five government regulations added £2bn of costs to our sector. While well-intentioned, policies are too often developed in isolation, without sufficient consideration of their impact on food and drink manufacturers.
We're asking government to stop moving the goalposts, and creating duplication which drives up costs, fuels inflation and stifles innovation. Regulatory change must happen in timescales that businesses can reasonably achieve, and companies need time to change when UK law realigns with EU standards. HFSS regulations should not be significantly revised only months after taking effect, and the packaging tax system requires reform.
3. Unlocking investment and innovation
Despite being the UK's largest manufacturing sector and a major adopter of advanced manufacturing technologies, food and drink was excluded from the Industrial Strategy. As a result, manufacturers have less access to skills support and funding available through the Advanced Manufacturing Sector Plan.
We are the biggest employer in most UK nations and regions. We want to invest, innovate, export and grow. But we’re excluded from R&D tax credits, government research funding, export support, and support for SMEs to invest sustainability and in healthier products. This needs to change. Investments will more than pay for themselves in regional growth and increasing exports.
