Policy exchange urges Labour to put food security at the heart of the government’s industrial strategy.
- A new report from Policy Exchange – backed by a cross-party group of MPs and Peers, as well as industry leaders – calls for the new Government to urgently place food security at the heart of Industrial Strategy and plans for growth.
- Exclusive new polling reveals that over half of food and drink manufacturers think mitigating supply chain risks is a significant concern for their business – and that 54% of SMEs are increasing the share of UK inputs in their supply chain.
- The report finds that previous food security initiatives have focused too narrowly on agriculture. While farming remains vital, a strategy that encompasses the whole food ecosystem – including food manufacturing, logistics and retail – is essential to keep products on shelves and prices down.
- Key recommendations include the development of a new Food Security Transformation Fund focusing on technology investment, a fast-track approval process for products that have been approved by trusted regulatory regimes in other countries and a new contingency framework for major food supply crises, to allow food suppliers to modify their inputs during periods of geopolitical disruption.
A new report from Policy Exchange, ‘Strengthening the UK’s Food Security: Innovation and investment in the Food Manufacturing Sector’, calls for the urgent need for the Government to develop a National Food Security Strategy that encompasses the entire food ecosystem – after years of high food price inflation and supply chains disrupted by the pandemic, the war in Ukraine and climatic events.
The report argues that:
- Investment in the Food and Drink Manufacturing sector has dropped by 30% since 2019 – despite an estimated industry turnover of £142 billion, as well as providing exports valued at over £24 billion. This compares to overall UK manufacturing (excluding food and drink) where investment rose by 5% over the same period.
- An inconsistent approach to industrial strategy – where the food sector has often been overlooked – and a regulatory environment that is often costly, overlapping and uncertain have also hindered efforts to attract investment.
- The report also emphasises the importance of the global dimension: though British farming is essential, the report rejects the position that the UK should be self-sufficient in food production, an unrealistic aim which would be both unachievable and counterproductive. The report argues food security can be enhanced through a a flexible, agile and robust trading ecosystem, with robust supply chains – and a reorientation of our international aid spending to support global food security.
The report makes 27 recommendations, across areas including investment, innovation, regulation and international trade, including:
- Government should develop a National Food Security Strategy that encompasses the entire food ecosystem, overseen by a Cabinet Committee or Ministerial working group.
- Government programmes, policies and funding opportunities aimed at enhancing food security should incorporate the whole food ecosystem rather than being narrowly focused on agriculture. This should include food manufacturing, logistics, wholesale, retail and hospitality.
- The British Business Bank should establish a new Food Security Transformation Fund focused on technology investment across the food ecosystem to help de-risk expensive capital investments and promote novel solutions across the food ecosystem that could contribute to food security.
- The Food Standards Agency should fast-track approvals for any product that has already been approved by trusted regulatory regimes in countries outside of the UK. This would allow more rapid approval of low-risk products and free up resources for other applications.
- The Government should make it easier for food suppliers to modify their inputs during periods of geopolitical disruption. This should include the ability to switch ingredients with a pre-approved list of substitute goods, as well as provisional preparation for the unilateral, temporary relaxation of tariffs and other trade restrictions on specific goods during another disruption.
- The Foreign, Commonwealth and Development Office should make strengthening global food security an increasing focus of the UK’s development spend.
ENDORSEMENTS:
Supporting the report, Sharon Hodgson MP, former Shadow Minister for Public Health and former Vice Chair of the Food and Drink APPG said:
“I welcome this timely new Policy Exchange report. Food security is one of the major challenges policymakers currently face, and the most vulnerable in our society are those who suffer the most. I particularly welcome the focus on innovation to combat food waste, something which I have frequently championed and supported – The Company Shop Group in my constituency is a brilliant example of this innovation at a local level. I urge the Government to carefully take note of the important recommendations contained within this paper.”
Baroness Bakewell of Hardington Mandeville MBE, Liberal Democrat Lords Spokesperson for Environment, Food and Rural Affairs:
“As this Policy Exchange report sets out, food production and food security are vital to the country. Cultivating supply chains that are resilient to climate-change related events will be more important than ever, and we can see from the conflicts around the world that a secure supply of food is critical. I welcome this timely intervention, and I hope it encourages an ever-increasing focus on this crucial topic.”
Rt Hon Wendy Morton MP, former Government Minister and MP for Aldridge-Brownhills said:
“Policy Exchange is right to highlight the critical importance of Food Security. Against a backdrop of global uncertainties, we must as a country take seriously the need to tackle both the availability and affordability of our food. The report places a welcome emphasis on the way a more holistic prioritisation of the food ecosystem would help to support UK farmers and domestic food production.”
Andrew Pakes MP, Labour MP for Peterborough said:
“The concept of food security has never been more important. It is paramount that we take a holistic approach to our food supply chain. I endorse the broad and encompassing approach that this Policy Exchange report recommends to support UK farmers and the manufacturing sector. Recent events have brought the concept of food security sharply to the fore, and as I have previously put forward, it should rank alongside energy security in terms of how we prioritise it.”
George Weston, Chair of Associated British Foods plc said:
“This report from Policy Exchange highlights the vital importance of food manufacturing to both food security and the UK economy and the key role that the sector plays in ensuring that our food is safe, nutritious and affordable. Associated British Foods believes that a pro-growth environment needs to be fostered thereby enabling the UK’s food and farming sector to decarbonise while simultaneously stimulating UK growth and investment, jobs and exports.”
Dame Fiona Kendrick DBE, Former Chair and CEO of Nestle UK and Ireland said:
“Strengthening UK food security must be a national economic priority along with defence and energy security. Against the backdrop of increased geo-political instability and climate change, we cannot assume that our food system will always withstand shocks. The UK Government should take forward these specific recommendations, including the development of a National Food Security Strategy, in collaboration with the entire food value chain to deliver a more secure and resilient food system that invests for the future.”
Response from The Food and Drink Federation CEO, Karen Betts:
“We welcome this insightful report from the Policy Exchange, which rightly puts food and drink at the heart of Whitehall policymaking. The UK has a highly sophisticated food system, which supports everyone’s daily lives by providing a wide range of affordable, safe and nutritious food and drink. But we must not take it for granted. Challenges lie ahead which need investment if our food system is to remain secure – from the innovation needed to tackle climate change, raise productivity, and invest in new products, to keeping prices fair for suppliers and consumers, and ensuring the UK strikes the right balance between domestic production and trade. Taking the right policy decisions now, weighed across Whitehall departments and as recommended by Policy Exchange, will lay the foundations for UK food security into the future.”