The FMCG intray for a potential Labour Government

Windsor Framework: back in action? Harvey Tebay ??

At the start of this month, power-sharing returned to Northern Ireland, and with that a new deal on the Windsor Framework. With support from both sides of the Commons, the new deal sought to improve the original post-Brexit protocol for trade across the Irish Sea. The Green Lane was scrapped for a new, less burdensome ‘UK Internal Market System’ and with that, came the introduction of UK-wide ‘Not for EU Labels’, allowing businesses to ‘fast-track’ imported goods to NI without using the Red Lane.?

While Labour supported the Conservative efforts to restore Stormont, once in office they’ve stated that their key focus will be to build trust with Europe, negotiate new arrangements and ultimately make the sea border disappear.?

Supply Chain pressures Bethan Burke

With increasing global pressures on supply chains, Labour could be set to inherit a complex web of issues at home and further-a-field issues, impacting the prosperity of UK supply chains.??

The current government have faced increasing criticism for the lack of a resilient UK food system, to deal with logistical setbacks, particularly from farmers and agricultural businesses left scorned. Labour has committed to strengthening the resilience to deal with global shocks and encourage UK growth, using government investment and regulation for Buy, Make and Sell more in Britain policy. This has included a pledge made in December, to ensure 50% of food in schools, hospitals and prisons is British grown produce.? While appealing to rural voting communities, Labour hasn’t considered the legacy left behind with this commitment; food, drinks and hospitality businesses continue to plug the gaps of availability of goods.??

Elsewhere, Labour will also have to strengthen its ESG credentials, with Environment Secretary Steve Barclay committing at COP28 to introduce the long-awaited requirement for goods entering the UK to have not been implicated by deforestation abroad, under the Environment Act 2021. The Shadow EFRA team remain tight-lipped on their approach to this policy, leaving businesses speculating how much support they will be afforded in dealing with supply chains, at home and abroad.??

The future of healthy eating? Abigail Bateman ?

With 25% of the UK adult population suffering from obesity and 1 in 3 children leaving primary school overweight, this issue continues to have a negative impact on individuals, the NHS and wider society.? Labour has stated it will take a more interventionist approach to healthy eating, more specifically to tackling child obesity. Labour has promised to implement a multi-pronged crackdown on HFSS products. This includes the long-awaited 9pm watershed for junk food TV ads, a prohibition on paid social media ads targeting children for unhealthy products, and a ban on selling energy drinks to under-16s.??

Whilst restrictive measures can shape consumer habits, education and awareness of healthier alternatives are essential for policies to have meaningful impact. This is where industry can play an integral role in educating and encouraging consumers to swap their sugar-filled snacks for something more nutritious. Although Shadow Health Secretary, Wes Streeting has joked about well-loved mascots, including Kellogg’s Tony the Tiger, becoming healthy food advocates, Labour plans to work with or if necessary, force industry to explore how successful food and drink marketing schemes can be used to promote healthier eating options.??

The Conservatives have discussed the ban on HFSS TV ads before 9pm for years, but nothing has materialised. Will Labour fall into the same trap of making bold promises with little follow through??

Employment woes Lewis Klein ?

Ahead of a General Election later this year, the Labour Party have been vocal in their plans to undertake the biggest overhaul of workers’ right in a generation. As part of this, it is expected Labour will scrap zero-hour contracts, grant greater rights to trade unions as well as new rights to workers for enhanced sick pay and the right to claim for unfair dismissal.??

The Labour Party have committed to introducing an Employment Bill in order implement these changes, as well as many others, that they deem essential to their plans to grow the economy and boost productivity. Despite this, Labour is likely to face great resistance to their proposals, mainly from the likes of the CBI, due to growing concerns that a transformation of workers’ rights could be damaging to the economy. As we have seen with the recent U-turn on the ￡28 billion green energy spending pledge, we could potentially see push back from businesses on Labour’s headline employment pledges, with the Party having to consider how to strike the right balance between empowering workers and not imposing greater cost for business during a time of continued economic uncertainty.??

Protecting procurement Tim Saunders ??

Inspired by the Dimbleby report – which Labour always had more time for than the government did – and with the intention to use new powers in the newly minted Procurement Act, Labour’s strategy will focus on incentivising small businesses, ensuring greater transparency and simplicity in the procurement process, and setting ambitious targets for sourcing locally and sustainably. Central to their plan is a commitment to leveraging public sector purchasing power to drive positive change in the food system.??

Labour envisions a future where public sector food and catering serve as exemplars of health, sustainability, and support for local economies. Their stance also underscores a comprehensive re-evaluation of the current system, viewing food security as a crucial component of national security. Their ultimate aim is to transform the landscape of public sector food procurement, prioritising quality, sustainability, and community resilience. The question is how much of this can be achieved by system change alone – and how much requires additional investment.?