Prime Minister Andy Burnham officially moved into 10 Downing Street this week, promising the “biggest changes” to politics in 40 years. Just two years after the previous government shuffle, the food, farming, and retail sectors are responding to their fifth prime ministerial change in four years. Burnham announced a cabinet reshuffle that placed Dame Angela Eagle at the Department for Environment, Food and Rural Affairs and Jonathan Reynolds at Business, Innovation, Science and Trade. While specific policies remain to be confirmed, Burnham has pledged to address the cost of living crisis and suggested movement on business taxes.
Building a resilient food system
The National Farmers’ Union (NFU) sent a letter to the new prime minister urging immediate action to prioritize food security. NFU President Tom Bradshaw argued that British farmers are the foundation of the nation’s food security, putting food on the plates of 28 million households every day. Bradshaw warned that while governments treat defence and energy security as national priorities, food security has been overlooked. He called for immediate action by backing a planning system that unlocks investment, regulation that drives innovation and growth, and ensuring there’s the workforce available for farming and growing businesses to thrive.
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Andrew Opie, director of food and sustainability at the British Retail Consortium (BRC), echoed this call. He said the government must remove hurdles holding back British farmers, including costs, planning restrictions, and reducing friction in EU realignment. Opie stated that these measures would allow the UK to build a more resilient and affordable food system that can deliver for both consumers and the economy long into the future. Karen Betts, chief executive of the Food and Drink Federation, added that manufacturers stand ready to work with the new PM to build a resilient food system that the country needs, emphasizing the need for innovation and investment in skills.
Brendan Costelloe, policy director at the Soil Association, argued in a letter to the prime minister that transitioning the food system is just as critical as transitioning the energy system. He noted that food currently receives a fraction of the investment needed to address climate change. Costelloe also praised the appointment of the Greater Manchester Food Partnership Board as the first combined authority member of Sustainable Food Places under the mayor’s leadership. He suggested this understanding of the relationship between diet and local food environments could be transformative if scaled across the country.
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Small businesses brace for impact
The Federation of Small Businesses (FSB) expressed optimism that the new PM can galvanize the government to make plans a reality. Tina McKenzie, policy chair of the FSB, said the PM has already set out a positive, pro-small business stance. She outlined a wish list that includes reworking mistakes on business rates by increasing Small Business Rate Relief and acting on costs after the National Insurance rises. McKenzie added that standing firm with small businesses must include opening up procurement and making decisions that impact local communities locally.
Independent bakeries face particular pressure from cumulative policies like rising National Minimum Wage and increased Employer National Insurance contributions. Karen Dear, CEO of the Craft Bakers Association, told Speciality Food that policies are often designed with large organisations in mind, ignoring the reality of independent businesses. “Accessing support is often far more difficult than it appears, and many businesses simply do not have the capacity to absorb continuous increases in costs,” Dear said. Brendon Manders from Lumberjaxe Food Company agreed that it is hard work to start a business in this industry. He noted that smaller businesses are getting completely bogged down by complex regulations and that the cost of ingredients and logistics has increased significantly.
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Reforming retail and hospitality
The British Retail Consortium (BRC) called on the PM to work with retailers to back reforms in employment costs, business rates, energy, and regulation. Helen Dickinson, chief executive of the BRC, explained that retail is where the economy shows up in everyday life. She noted that retailers have absorbed £6.5 billion in additional employment costs since 2024, alongside billions in new packaging taxes and business rates. Dickinson argued that with the right policies, retail can drive investment, support jobs, and keep household essentials affordable.
The hospitality sector has been hit hard by policy instability, according to Steve Perez, founder and CEO of Global Brands. Perez argued that reducing VAT rates for hospitality from the current 20% to 10-13% would be a significant policy change. He also called for urgent reform of business rates for pubs, noting that almost two pubs are closing per day in 2026. Additionally, Perez urged the PM to scrap the planned tourist tax, arguing it would hurt holidaying Brits and the local businesses that rely on tourism revenue.
