Labour manifesto published

This document contains many policy undertakings of interest to the food and consumer goods industry, including:

Tax and spending

• Fiscal responsibility - adherence to tough fiscal rules (p. 19)

• Close scrutiny of all government decisions by the OBR (p. 19)

• No increase in NI, income tax rates or VAT (p. 21)

• Only one major fiscal event per year (p. 31)

• Roadmap for business taxation to be published (p. 31)

• Corporation tax to be capped at 25% (p. 31)

• Tax incentives for business investment to be retained (p. 31)

• Business rates system to be replaced, to create fairness between physical and online operations (p. 31)

• New 10-year infrastructure strategy (p 32)

Economy

• Retain the current 2% inflation target (p. 21)

• New industrial strategy, focused on tech and areas of strength (p. 27)

• National Wealth Fund, to support strategic investments (p. 28)

Immigration

• Reform the current points-based migration system (p. 41)

• Skills England will work with the Migration Advisory Committee to ensure that skilled workers are trained in the UK (p. 85)

Work

• Link Job Centre Plus and National Careers Service to form a new body (p. 43)

• Guaranteed access to training apprenticeship of help to find work for young adults (p. 43)

• Reform of the apprenticeship levy (p. 86)

• New Deal for Working People within 100 days (p. 45)

• Closer working with unions, single enforcement body for workplace rights (p. 43)

• Single minimum national wage, increased in line with inflation (p. 43)

• Action to reduce “pay gaps” based on disability, sex or race (p. 88)

Health

• Independent prescription rights for pharmacies (p. 98)

• Action to further regulate the sale of tobacco and vapes (p. 102)

• Action to ban advertising of “junk” food to children (p. 102)

• Action to ban the sale of energy drinks to children (p. 102)

• Focus on health inequalities (p. 103)

Food

• Half of the food procured by the public sector to be UK produced or sustainable (p.59)

• Introduction of a Land-Use Framework (p. 59)

• Reduce food prices by eliminating barriers to trading (p. 20)

International

• No return to the EU or the single market (p. 117)

• Development of veterinary agreement with the EU (p. 118)

• Closer alignment of security and industrial strategy (p. 119)

• Further development of trade strategy (p. 121)

Crime

• Focus on preventing shoplifting (p. 65)

• New offence of assaulting a retail worker (p. 65)

• Personal penalties for leaders of businesses selling knives illegally (p. 66)

Energy

• Significantly increase green electricity production by 2030 (p. 51)

• No new oil, gas or coal production (p. 52)

• Set up a new green energy company Great British Energy (p. 53)

• Support for Carbon Border Adjustment Measures – CBAMS (p. 56)

IGD Opinion

The Labour manifesto focuses heavily on economic objectives – with the emphasis on making long-term decisions and investments, in order to deliver stability and confidence.

The manifesto includes some proposals for tax increases but, as with the Conservative manifesto, there is a lack of clarity over financial plans.

Some elements of the manifesto will be welcomed by food and drink businesses, especially the commitment to improve the skills landscape to build a talent pipeline for the future. Whilst the industry makes progress in these areas, there are short-term acute labour shortages, that the manifesto does not address.

Others may cause more concern, such as the drive to reduce inward migration, even for skilled workers. If migration falls before UK workers are prepared, then existing personnel challenges will be amplified.

The manifesto expresses a desire for partnership with businesses, a model of working that will be welcomed by businesses and can support strategic work and policy implementation.

Food and the transition to healthy and sustainable diets receive less coverage in the Labour manifesto than may have been expected. The introduction of a Land-Use framework can be central to determining future resilience in UK agriculture. The commitment to the Tobacco and Vapes bill and the advertising of less healthy food for children is a continuation of public health policies that are already scheduled.

There is a clear aim to reduce food prices through the elimination of barriers to trading. It is not clear whether this means barriers to trade in the sense of border operations or in the wider sense of bureaucracy. Industry will be keen to see further details of this in due course.