Including retail jobs, youth employment, food system resilience, British farming, food production, inflation, gas storage and tourism taxes.
Retail jobs scheme targets youth employment crisis
Retailers and ministers have launched Opening Shift, a new scheme to create 100,000 jobs for 18–24-year-olds not in education, employment or training by the end of this Parliament. Announced at the BRC Retail Jobs Summit in Parliament, the programme will offer two-to-four-week work experience placements and guaranteed interviews. It comes as IGD relaunches Feeding Britain’s Future, working with The Careers & Enterprise Company to help 11–16-year-olds access high-quality local work experience.
IGD opinion
This shows industry is moving from intent to action on youth employment. Work experience can widen access to food and grocery careers, but the test will be whether schemes convert into sustained jobs. With hiring costs rising, government also has a role in reducing the risk of taking on young people.
Food system resilience must improve faster, says NAO
The National Audit Office (NAO) says progress to strengthen UK food system resilience is not keeping pace with growing risks. While recognising improvements in Defra's resilience capability, its new report identifies several gaps including:
• Emergency plans have not been sufficiently tested
• Industry involvement could be stronger
• Local preparedness remains uneven
• Government powers may be insufficient in a severe disruption
The report urges stronger preparedness and closer collaboration across government and industry.
Read our article NAO urges faster progress on food system resilience, including IGD opinion here
Defra says farming is central to national security
Environment Secretary Angela Eagle used Back British Farming Day to argue that farming should be treated as part of national security, alongside energy and defence. Speaking at the NFU reception, she said food supply has been taken for granted and highlighted pressures from rising input costs, heatwaves, water shortages and bluetongue.
IGD opinion
This reinforces the link between farm viability and food security. For the food industry, the test is whether policy support helps primary producers invest, manage climate risk and maintain reliable domestic supply.
NFU calls for action to boost UK food production
The NFU is urging government to set ambitious targets for domestic food production, warning that UK self-sufficiency has fallen in 10 of 11 key food categories over the past 30 years. Its new report, Ready to Grow: Unlocking British Farming's Economic Potential, says the UK's reliance on imported food has increased as production has declined and profitability pressures have intensified. The report also highlights the economic importance of farming, noting that agriculture supports jobs and economic activity across every region of the country. The NFU argues that greater policy certainty, investment and support for productivity are needed if farming is to increase output and strengthen food security.
IGD opinion
Alongside the NAO’s findings on preparedness, this report highlights another dimension of food system resilience: the long-term productive capacity of UK farming. The priority should not be to produce every product domestically, but to identify where commercially viable UK production can reduce exposure to disruption, diversify supply and strengthen food security.
Bank of England warns inflation risks remain high
Bank of England Governor Andrew Bailey told the Treasury Select Committee that inflation risks remain “on the upside” (i.e. inflation more likely to rise than to fall), with Middle East conflict adding uncertainty to energy prices and financial markets.
Bailey said interest rate expectations appeared to include a risk premium linked to possible energy price increases, but pushed back against the idea that any further Bank Rate rise was inevitable. The Bank’s next rate decision is due on 17 September.
IGD opinion
Energy remains a key inflation risk for food and grocery. Even without an immediate rate rise, volatile energy costs could keep financial conditions tighter for longer and add pressure to business costs.
Low gas storage leaves UK exposed to future shocks
The UK's strategic position on natural gas is becoming increasingly fragile. While conflict in the Middle East has not yet triggered the price spikes seen after Russia's invasion of Ukraine, UK gas prices have been rising since early July and concerns are growing ahead of winter.
A key issue is storage. The UK currently has eight gas storage facilities and storage capacity equivalent to around 20 days of average demand, significantly lower than many European peers.
The situation could become more challenging from April 2027, when the Rough storage facility, which accounts for around half of UK gas storage capacity, is expected to close.
IGD opinion
The key issue is resilience rather than supply. Limited storage increases exposure to volatility in global energy markets and reduces flexibility during periods of disruption.
Storage not only allows gas companies to cope with seasonal or daily surges in demand, it also allows companies to even out price fluctuations by buying when prices are low and releasing when prices are high.
The UK currently has eight gas storage facilities, all privately owned, a combination of underground salt caverns (short term storage of small volumes) and depleted oil / gas fields (longer term storage of large volumes).
The former Rough gas field in the North Sea, accounts for about 50% of all UK gas storage. However, this is expected to close in April 2027, because storage consent will expire. Centrica has no plans to renew the storage consent but is exploring options to convert the site to hydrogen storage.
Even with Rough still in use, the UK's gas storage capacity is around 20 days (at average use), which is low compared with peer nations like France, Germany and the Netherlands.
Lack of storage does not, in itself, mean that the UK will run low on gas, but it does increase exposure to changes in price or availability on global markets - with implications for business and domestic users.
With North Sea supplies running dry (gas extraction peaked in 2000), the UK has been a net gas importer since 2004. 68% of supply is imported with 69% of these imports from Norway, via pipeline, with another 23% being liquid gas from the USA.
Tourist tax powers raise hospitality concerns
Mayors and local leaders will be given powers to introduce an Overnight Visitor Levy on hotel and other accommodation stays, with revenues invested in local priorities. The government says the measure will support tourism hotspots and local growth, but hospitality groups have warned it could increase costs for domestic visitors and make UK destinations less competitive at a time when household budgets remain under pressure.
IGD opinion
National or local tourism taxes are common in other countries, but it has never been tried in the UK.
The Levy will be formulated as a percentage of the total cost of accommodation, not a flat fee. This, in theory, will give local leaders flexibility and protect less expensive accommodation. However, the Levy will be uncapped, which has raised concern amongst business leaders.
Any measure that discourages tourism could affect spending in hospitality, foodservice and local retail. The balance between raising revenue and supporting visitor demand will be closely watched.
Chancellor says fiscal discipline is essential for growth
Chancellor John Healey has argued that restoring confidence in the public finances is a prerequisite for economic growth, signalling that fiscal discipline will be central to the October Budget.
Speaking in Coventry this week, he addressed the challenge of high public debt and high interest rates, stating that it is necessary to restore faith in the government's ability to manage its own finances. He also discussed:
Fiscal and economic devolution
The need for stable policy
Driving investment
Supporting NEETs
Exploiting the potential of AI.
Separately, the Chancellor has written to government departments, emphasising the need to dynamic action and pace, rather than extensive consultation.
IGD opinion
The government's growth ambitions depend on maintaining investor confidence. With public debt high and borrowing costs elevated, reassuring financial markets will be essential if the Chancellor is to create room for investment and avoid further pressure on interest rates.
This speech appeared designed primarily to reassure investors that fiscal discipline remains a priority. However, it contained few concrete commitments on tax or spending, meaning the October Budget is likely to be the key test of whether markets are convinced.