The Food and Drink Federation has penned a letter to ex-Chancellor Rishi Sunak calling for an increase in support amid the cost-of-living crisis.
Citing the industry’s setbacks the FDF’s CEO Karen Betts has urged governmental commitments to ease labour shortages, strategies to boost productivity and taxation.
“Our margins are slim and have been relentlessly squeezed by the pandemic and its impacts, and now by the crisis in Ukraine. All our companies are doing everything they can to contain the impacts of inflation…” the letter explained.
“We are now in the tenth consecutive month of food price inflation. With the cost of ingredients and energy still rising relentlessly, companies in our sector think that food price inflation still has some way to run.”
READ MORE: FDF publishes new trade strategy for growth and cost of living
Appealing to Sunak’s bid to become the next leader of the Conservative party, the letter asks for various support measures “if” he “becomes the UK’s next prime minister.”
The letter has called for measures to ease labour shortages as they contributed to driving up food price inflation.
Additionally, Betts has asked for “agile ways of supporting our sector to boost productivity and support investments in “automation to digital and advanced technologies.”
Specifically, the statement suggests a government scheme fund linked to levelling up objectives that would allow companies to bid competitively.
Betts has also called on the government to look at “VAT, business rates, the reform of R&D tax credits and the Apprenticeship Levy – ensuring these work for businesses of all sizes.”
Reducing the costs of regulation was highlighted, with specific criticism of the government’s plan on creating a circular economy for packaging being overly complex.
The news comes after the FDF published a Trade and Investment Strategy to deliver growth across the UK amid the cost of living crisis which outlined a “positive, comprehensive, cross-government approach”.
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