New government: Sector calls for understanding and support

Ahead of today’s general election result confirming a new Labour Government, we asked wholesalers across the UK to share what they are looking for in order to succeed

Unitas Wholesale Managing Director John Kinney said that members wanted to see several challenges addressed, not least the “constant” legislation being introduced into retail and wholesale.

“This adds significant cost which ultimately will be passed on to the consumer. New measures must be evidence based, practical and proportionate to implement, and have achievable timeframes and targets,” he said.

He referenced examples such as the age restriction/smoking ban as “impossible for retailers to implement”.

“The Not for EU labelling proposal also needs rethinking as it will cause significant issues for wholesalers and consumers on the mainland and in Northern Ireland,” he said.

“We would also expect Westminster to use its influence to ensure alignment between the devolved administrations when introducing legislation that affects businesses that work across or around borders, such as the Deposit Return Scheme.”

“Similarly, we would expect local authorities to align when introducing local restrictions, such as Ultra Low Emission Zones.”

UNDERSTANDING

Understanding the sector and its complexities is key for policies to be effective and implementable.

“The recent delays to Deposit Return Schemes and HFSS restrictions show what happens when governments impose impractical obligations on businesses,” said Kinney.

“In contrast, the Soft Drinks Industry Levy introduced in 2018 gave manufacturers three years to reformulate their products and avoid the additional tax. We would like a new government to champion this ‘nudge’ approach, based on close consultation with all supply chain stakeholders,” he added

Tom Gittins, CEO, Confex, said “We would like to remind the new government to continue to work closely with FWD to understand the needs of the wholesale sector. The UK food supply chain has been tested over the last few years through Brexit, Covid and the war in Ukraine highlighting the importance of the vital role that wholesalers play in feeding our nation. Confex will continue to work on behalf of our 223 regional wholesalers and we would welcome further dialogue and support across the Labour leadership in these endeavours.”

Dunsters Farm’s Group Commercial Director Tom Mathew is in agreement. “We need government to have a better understanding of how the industry works and the vital role it plays,” he said.

“Better communication and interaction is needed regarding changes such as the Single Supplier Framework that Crown Commercial Services introduced to help inform and shape policies before governments are committed to them.”

He encouraged the new government to be wary of the unintended consequences of their policies, and said instead “they should focus on encouraging competition”.

INVESTMENT

Wholesalers also wanted support to focus on growth. Dr Jason Wouhra OBE, Lioncroft Wholesale CEO, said he wanted to see businesses encouraged with tax allowances to invest in research and development.

“The wholesale sector is innovative and creative and there should be tax benefits for those who are investing in technology and ways of working that will directly improve ease of access for customers,” he said.

“Competitive support that helps businesses grow is critical for success in the coming years.”

Castell Howell’s Finance Director Nigel Williams agreed: “We need to demonstrate that the UK is open for business and secure greater private investment in economic enablers by showing long-term policy and regulatory stability, through a business tax roadmap, a reformed planning system and a leading global trade and investment strategy.”

“What we want most after the turbulence of the past four years is more stability, and policies that support lower inflation leading to lower interest rates which will in turn support investment and growth,” he continued.

“This will also reduce pressure on wage costs, as the National Living Wage places a huge burden on small businesses.”

Wouhra also referenced a need for support with “escalating rates of minimum wage pay”. He said: “The intensity of inflation has now passed, and businesses simply cannot continue to absorb the soaring costs of employment – the rise needs to slow down.”

Kinney added: “While we want people to be paid appropriately, the channel works on very low margins and more detailed consultation needs to take place to fully understand the implications of implementing proposed significant rises over a short period of time.”

THINKING GREEN

Tom Mathew would like to see sustainability higher on the political agenda.

“We would like to see more practical support for sustainability initiatives,” he said.

“This could include incentives for reducing carbon footprints and waste, as well as grants for implementing green technologies. And again, there really does need to be a focus on understanding how our industry works in order to come up with practical solutions.”

SPECIFICS

For Welsh wholesaler Castell Howell, Managing Director Matt Lewis has a clear request.

“We would like to see the M4 relief road plan looked at again,” he said. “It was scrapped in 2019 and other measures were to be considered but nothing we have seen so far has given us any comfort and we only expect congestion to get worse. This will have an impact on inward investment and tourism with people avoiding travelling to the region, plus countless hours wasted where vehicles are not moving.”

Castell Howell Confex Dr Jason Wouhra DRS Dunsters Farm Government HFSS John Kinney legislation Lioncroft Wholesale Matt Lewis National Living Wage Nigel Williams Soft Drinks Industry Levy sustainability tax Tom Gittins Tom Mathew ULEZ Unitas Wholesale