In last week’s The King’s Speech, Keir Starmer set out his government’s objectives for the current parliament.
Stability and economic growth were among the key messages, with the Prime Minister stating the government would seek a new partnership with business and working people and help the country move on from the cost-of-living challenges.
The new government has been welcomed warmly by several trade bodies in the baking and wider food & drink sectors who are excited about the opportunities to focus on the key issues.
Andrew Pyne, chief executive of the Federation of Bakers, which represents the UK’s largest bakery companies including Warburtons and Allied Bakers, said the organisation “welcomes the opportunity to work with the new government on areas of vital importance to the baking industry and its supply chain”.
“Areas of continued focus for the baking sector include: food security and resilience; the impact of climate change; investment for a sustainable greener economy; and increased productivity,” he added.
UK Flour Millers was also among them as CEO Alistair Gale stated: “We look forward to working with the new government to further bolster our food security, advance sustainability and manage trade relationships prudently.”
Here we look at some of the key points raised in the speech, and how trade bodies have reacted to them.
Industry & employment
“My ministers will establish an Industrial Strategy Council,” stated Starmer. “It is my government’s objective to see rising living standards in all nations and regions in the United Kingdom.”
The Prime Minister also announced legislation to introduce a “new deal” for working people would be introduced with the aim of banning exploitative practices and enhancing employment rights.
Karen Betts, chief executive, The Food and Drink Federation
“The government’s vision for an industrial strategy is particularly welcome. We hope this will drive good regulation and a dynamic business environment, alongside effective cross-government and intra-sector engagement. We welcome the New Deal for Working People. As an industry that employs half a million people, we look forward to engaging with government to ensure this policy works for both our workforce and the diverse range of employers in our sector, 97% of which are SMEs.”
Helen Dickinson, chief executive, British Retail Consortium
“The retail industry supports the goal of making work pay, enhancing employment rights, and banning exploitative practices. There are three million retail workers in the UK, and a further 2.7 million in the supply chain, and we look forward to engaging with the government as it carries out its consultation to ensure the plans are practical and workable for businesses and employees.”
IGD
“The reference to the establishment of an ‘Industrial Strategy Council’ in a similar vein to the Office for Budget Responsibility and the Climate Change Committee, although not enshrined in legislation at this stage, could be transformative in providing long-term strategic guidance on the economy. The food system is critical to the UK economy and to driving growth. It is the UK’s largest private sector employer accounting for 7% of economic activity and must be central to any future economic growth strategy.”
Skills & training
The apprenticeship levy is to be reformed, with the government establishing Skills England “which will have a new partnership with employers at its heart”.
Karen Dear, chief executive, Craft Bakers Association
“Concerns regarding the National Minimum Wage/Living Wage are continually raised, particularly the potential cost implications for small businesses in 2025, following an increase this year of 9.8% in this year.
“National President John Foster recently attended a meeting addressed by the Minister for Work and Pensions, Liz Kendal MP on the subject of worklessness. Through a pilot project, Pathways to Work, the government plans to get more people back into work. The CBA’s view is the government needs to work closer with the association and employers in the baking industry to radically shift perceptions of bakery, hospitality, and retail roles as being low paid and unskilled, recognising that the pathway to work can continue within employment to higher paid, more skilled roles withing these sectors. This needs to be reflected in college places, onsite training support and access to grants to through the new Skills England initiative, which is to replace the Apprenticeship Levy for the baking industry.”
Karen Betts, chief executive, The Food and Drink Federation
“It’s good to see too the announcement of the growth and skills levy, which we hope will help to address the chronic skills shortage we currently face, at all skill levels, from operators and engineers to food technologists and scientists.”
Kate Nicholls, chief executive, UKHospitality
“The establishment of Skills England is a positive step that brings skills and education together under a single organisation to help drive economic growth and upskill the current and future workforce. Given the right circumstances, the hospitality sector is capable of delivering growth of 6% per year, and a focus on skills is central to this ambition. The sector is already the third largest employer in the UK, providing 3.5 million people with jobs, so it’s vital that our voice is represented within the new body.
“We are pleased to see the commitment of the new body to broaden the types of training that the apprenticeship levy can be spent, however we also need to see a focus on how apprenticeship delivery can be improved for the benefit of both workers and businesses and a focus on pre-apprenticeship training and we look forward to working closely together to achieve this.”
Helen Dickinson, chief executive, British Retail Consortium
“The industry is united in welcoming the King’s announcement of a Bill to reform the apprenticeship levy. The rigidity of the current system prevents retailers from using funds to provide much-needed training for colleagues and support industry transformation. We hope that the flexibility offered by the new Growth and Skills Levy will allow for the use of funds for pre-employment courses, short courses encompassing functional and digital skills, and other advanced courses that will meet the needs of a modern workforce.”
Food & drink
The prime minister said legislation would restrict the advertising of ‘junk’ food to children along, and the sale of high-caffeine energy drinks to children.
Karen Betts, chief executive, The Food and Drink Federation
“Our industry stands ready to partner with government to help to tackle obesity and poor diets. We welcome the clarity provided today on the implementation of HFSS advertising restrictions. We hope secondary legislation and guidance will follow quickly, to enable industry to prepare effectively for the changes.”
Energy & climate
Starmer stated that his government recognised the urgency of the global climate challenge and is committed to transitioning to clean energy transition which will lower energy bills for consumers over time.
“A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind,” he said. “Legislation will be brought forward to help the country achieve energy independence and unlock investment in energy infrastructure.”
Karen Dear, chief executive, Craft Bakers Association
“Key concerns within the industry include continued high energy costs and contract pricing disparities, leading to business closures. The CBA advocates for a coordinated approach to energy contract renewals to level the playing field. Additionally, a rebalancing of electricity and gas prices is sought to incentivise the use of electricity over gas. Support for transitioning to solar and green energy, upgrading equipment, and funding for sustainable practices are also requested.”
Karen Betts, chief executive, The Food and Drink Federation
“We’re confident that, with the right partnership with government, we can turn the challenges our sector is facing – from boosting science and innovation, to reaching net zero, and supporting healthier and more sustainable diets and lifestyles – into tangible opportunities for economic growth.”
Planning
“My ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing,” stated Starmer.
Kate Nicholls, chief executive, UKHospitality
“Planning approvals have been in freefall since 2013 and has been one of the major barriers to business growth. I’m pleased to see the inclusion of this Bill to reform the system, putting growth at its heart. A new system that delivers faster decisions can drive business expansion, create more homes and develop local infrastructure – all critical elements to regenerating of our towns and cities.”
Helen Dickinson, chief executive, British Retail Consortium
“We look forward to seeing more detail of the government’s proposed Planning and Infrastructure Bill and its promise of much-needed planning reforms. The very nature of our high streets and retail centres are changing, yet current planning laws are failing to keep pace with this transformation, making them a barrier to, rather than a facilitator of, this change. Government must ensure that planning departments are better resourced, allowing them to make faster decisions and provide statutory certainty about application timelines, and creating streamlined processes for planning decisions regarding minor improvements.”
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