UK food and beverage sector faces changing political priorities

The election of a Labour government marks a significant shift in the UK’s political landscape, bringing new priorities and policies that will directly impact the food and beverage industry. The Labour government has pledged to focus on economic growth, sustainability, and public health, which will influence regulatory and operational frameworks within the sector.

Labour’s key priorities include cleaning up rivers, lakes and seas, creating a roadmap to move Britain to a zero-waste economy, boosting food security, ensuring nature’s recovery and protecting communities from the dangers of flooding.

Food security and support for British farmers

The government has emphasised the importance of food security and supporting British farmers. Policies include a target of 50% of food consumed in the UK to be produced domestically and addressing labour shortages in the farming industry. Labour’s manifesto included plans for half of all food purchased across the public sector to be locally produced or certified to a higher environmental standard. These measures aim to bolster local production and reduce reliance on imports, which could reshape supply chains and sourcing strategies

Labour will also look to improve the land-use framework to make environmental land management schemes work for farmers and nature.

Ad and sales bans to be imposed

Another of Labour’s initiatives is a clampdown on foods high in fat, sugar and salt (HFSS). While the government has ruled out imposing a tax on HFSS foods, it plans to ban the advertising of junk food and sugary snacks to children. Restrictions on advertising these foods on TV and online will apply across the UK from 1 October 2025. The restrictions will prohibit ads for HFSS products on TV or on-demand programme services between 5:30am and 9pm and will apply an outright ban on paid-for online ads for HFSS products aimed at UK users.

The restrictions were originally introduced by the Health and Care Act 2022 under the previous government, but their implementation was subsequently delayed. The Labour government has resurrected the rules with aims to address public health concerns, particularly childhood obesity.

The Labour government is also seeking to ban under-16s from buying high-caffeine energy drinks. The previous government had planned to implement a similar ban, but the move was scrapped over fears of meddling in personal choices.

A number of UK supermarkets have already imposed a voluntary ban on the sale of these caffeinated drinks to those under 16, but Labour’s move would make this mandatory. Under the plans, drinks containing more than 150mg – the equivalent of 0.03 teaspoons – of caffeine per litre would fall within the ban.

Tackling food costs and access to markets

The government aims to negotiate a veterinary agreement with the EU to streamline the border process. This agreement would allow for a reduction of “unnecessary” border checks on animal and plant products, helping to lower food costs and improve supply chain efficiency. By easing these restrictions, the government hopes to mitigate the impact of Brexit on the food and beverage sector and ensure a smoother flow of goods between the UK and the EU.

Labour has also launched a comprehensive trade strategy aimed at further enhancing market access for UK food and beverage businesses, promoting the highest standards of food production. This strategy is part of a broader effort to drive economic growth and ensure the UK’s competitive edge in not only EU but global markets.

The new government is actively pursuing trade agreements with international partners such as the Gulf Cooperation Council (GCC), India, Israel, South Korea, Switzerland and Turkey. These agreements will set out to open up new markets for UK firms, providing them with greater opportunities to export their goods and services.

The strategy emphasises maintaining and promoting high standards of food production, ensuring that UK food products meet stringent quality and safety standards recognised and respected around the world.

There are also plans to support small and medium sized businesses, recognising the unique challenges faced by these firms. This will be done via measures to help support these businesses expand and export their products, providing access to export support services and expanding the UK Export Academy.

By focusing on expanding exports, supporting SMEs and fostering innovation, the government aims to ensure that the UK remains a global leader in the food and beverage sector.

Pinsent Masons recently hosted a webinar discussing the pollical environment and emerging policy impacting the food and beverage sector, with a further session scheduled for 6 November.