4 ways Labour policies will impact the food and drink industry

The King’s Speech on 17th July unveiled the new Labour government’s priorities following its election win. Marking the opening of parliament, the speech by King Charles III introduced several measures that will affect fine food and drink retailers and other players in the supply chain.

Discover the government’s priority policies and how key industry players responded to their announcement below.

1. A Crime and Policing Bill to address retail crime

The government will make assaulting retail workers a crime through its new Crime and Policing Bill. The independent retailers’ association Bira welcomed the government’s commitment to tackling shoplifting and antisocial behaviour. “We are pleased to see the government taking decisive action on issues that have become a blight on our high streets,” said Andrew Goodacre, CEO of Bira. “For too long, our members have faced increased incidents of theft, greater volumes of stolen products, and rising abuse towards business owners and staff.”

Recent figures showed the seriousness of the rise in shoplifting, as they hit a record high of 1,200 offences a day. According to the British Retail Consortium (BRC), retail crime is costing retailers and their customers £3.3 billion a year.

The government’s measures include a clampdown on shoplifting (reversing the previous £200 theft threshold), the creation of a new offence for assaulting shop workers, and the introduction of ‘Respect Orders’ to address antisocial behaviour. 

Bira said these will provide much-needed support to independent retailers across the UK, as it is hoped the law will make it easier and more straightforward for authorities to investigate and prosecute offenders.

The industry body also highlighted the need for increased police presence on high streets and in neighbourhoods, which has been one of its two key priorities. This recognises that “physical presence is the greatest deterrent to theft, violence, and antisocial behaviours,” Bira’s Andrew said. The group has also pushed for greater legal protection for business owners and their employees. 

But Bira was “particularly encouraged” by the government’s plan to make the abuse of retail staff a standalone offence. “This is a crucial step in safeguarding our hardworking retailers and their teams,” Andrew said.

Large retailers, including Co-op, Tesco and Nisa, all welcomed the news. Paul Gerrard, Co-op director of campaigns and public affairs, said the crackdown marked a “seismic shift” that would “send a clear and powerful message to those who think it is acceptable to attack, assault or abuse shopworkers”.

According to the latest crime data from Co-op, there were more than 172,000 incidents of retail crime in the first half of 2024, making a 4% increase last year’s levels and a whopping 42% increase since 2022.

Paul said there is evidence to show that the rules will make a measurable difference. “In Scotland – where they have had a standalone offence since 2021 – we see 60% of incidents of violence and abuse towards shopkeepers (that are reported to the police) resulting in arrest, while in England and Wales, without that standalone offence, the figure is just 10%.”

2. Re-commitment to HFSS

Legislation on HFSS food, which is high in fat, sugar and salt, was introduced and began rolling out under the Conservative government, but as part of the King’s Speech, Labour committed to restricting the advertising of junk food to children, as well as introducing plans to restrict the sale of high-caffeine energy drinks to children.

Under the previous government, a ban on advertising HFSS foods online and on TV before 9pm was set to come into force in January 2025. It followed rules on in-store promotions and placement restrictions.

The NHS Confederation said in its analysis of the King’s Speech that emerging evidence supports advertising restrictions as a policy tool to reduce the purchase of HFSS foods. “This legislation will improve the future resilience of the population by protecting children from unhealthy advertising and reduce obesity levels in the future,” it said.

Kate Howard, children’s food campaign coordinator for Sustain, welcomed the commitments and said the group hopes to see them implemented “promptly”. 

“We’d like to see the Labour government establish a comprehensive children’s health and food strategy to tackle food-related ill health,” she added. “This should include banning ‘buy one get one free’ promotions of unhealthy food and expanding on the huge success of the Soft Drinks Industry Levy to encourage healthier recipes across a wider range of food and drinks.” 

3. An Employment Rights Bill causes ‘worry’ for small businesses

The government also introduced its Employment Rights Bill in the King’s Speech, which will enhance employment rights and end “exploitative” practices such as zero-hour contracts and ‘fire and rehire’. It will also establish the Fair Work Agency, a single enforcement body for workplace rights.

“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 on the Bill to ensure the plans are practical and workable for businesses and employees,” said Helen Dickinson, chief executive of the BRC.

As part of its plan to ‘Make Work Pay,’ Labour’s manifesto also included plans to “remove the discriminatory age bands to ensure every adult worker benefits” from increases to the minimum wage. While the minimum wage for those 21 and older is £11.44, 18- to 20-year-olds are currently only entitled to £8.60.

However, some in the industry have voiced concern over the cost of implementation. “Small businesses are increasingly worried about the developing employment rights package,” said the Federation of Small Businesses’ (FSB) policy chair Tina McKenzie. “More than nine out of 10 small employers say they are concerned about the prospect of increased costs and risks when they employ people, and there were no commitments within this to look after small employers who will struggle the most.”

4. Positive policies for farmers

NFU president Tom Bradshaw welcomed the government’s repeated support for food security as national security, but he said that now the industry needs to see a plan for food production that backs this up.

Several bills included in the King’s Speech were “significant for British farm businesses and the nation’s food security,” he said, “not least those relating to planning reform and infrastructure, crime and policing, mental health, skills and new technologies and renewable energy opportunities through the creation of GB Energy.

“Our farmers and growers are ambitious for the future, and with new policies that revitalise farm business confidence, government can help to kickstart economic growth, deliver affordable, climate friendly, high-welfare food production, improve the environment, and stimulate clean energy supply,” he said.

On 22nd July, an open letter coordinated by the Soil Association has called on the new prime minister to back and scale up the UK’s horticulture sector. “Almost half of our veg and more than 80% of our fruit is imported. This cannot go on,” they wrote. “We urgently need more – not less – home-grown fruit and veg, or we face further disaster for supermarket shelves, our health, and the environment.”