Government urged to back £50 billion food manufacturing growth plan

The Food and Drink Federation (FDF) is calling on the government to partner with “the backbone of the UK economy”.

The organisation has a plan for growth and competitiveness it believes could double annual investment, grow exports to £35 billion, and position Britain as a global hub for food and drink innovation.

From the bakers and cereal makers of the Midlands, to the soft drink producers of the South-West, to Scotland’s oat millers, and soup makers in the South-East, the UK’s 12,000 food and drink manufacturers are part and parcel of our economy.

However, says the FDF, with rising costs, regulatory pressures and uncertainty, and increasing competition from abroad, business confidence in the sector fell to -60% in Q3 2025. 

Nonetheless, the sector is determined to seize untapped growth, it adds.

Backed by many of the nation’s most well-known and loved food brands, food and drink manufacturers’ have laid out their five Growth Ambitions to support the resilience and long-term success of the sector.

They are:

1. Doubling annual business investment from £5.8 billion to £12 billion.

2. Growing exports to £35 billion.

3. Generating over £50 billion in gross value-added (GVA) for the UK economy by unlocking a £14 billion opportunity in technology adoption. 

4. Make the UK the global hub for healthier product innovation and food and drink R&D.

5. Contribute to a 50% reduction in emissions across the agrifood supply chain and drive investment in the circular economy.

With the sector tasked with finding solutions to some of society’s biggest challenges, from healthier diets and sustainability, to harnessing new technology and increasing trade, the common thread to unlocking growth in all of these areas is renewed investment.

In setting out a clear, actionable plan, the FDF is highlighted at its recent annual Investment summit how a strong government-industry partnership can unlock growth and investment in the UK’s largest manufacturing sector. 

From promoting British exports and strengthening supply chain resilience, to supporting investment in healthier products and innovative ingredients, there’s a big opportunity for UK food and drink to lead on the global stage. Manufacturers are coming to the table with a host of ways government can help industry achieve this, including:

Broadening R&D tax credit eligibility to include healthier product innovation.

- outdated and restrictive import rules that stop food manufacturers from bringing in food samples for research and development.

- Opening up existing funding in robotics and technology so food and drink manufacturers can access it too.

- Matching the devolved nations’ export support and promotion to help small businesses sell their products abroad.

- Offering tax relief to help scale-up innovation in cutting-edge precision fermentation, which is creating the next generation of ingredients.

- Supporting the transition to a higher skilled workforce by introducing short courses that are critical to the sector within the Growth and Skills Levy.

Karen Betts, chief executive at The Food and Drink Federation (FDF), said, “We contribute £37 billion to the economy, employ half a million people, and export nearly £25 billion of British products loved around the world. But our industry can and should do so much more. We need to grow our investment in technology, environmental sustainability, and healthier products, to better serve the UK’s growing population and maintain our competitiveness. But to do that, we need a stronger partnership with the whole of government, with clear, agreed aims, which create the conditions and the confidence for companies to invest.”

She added that British companies believe in the UK as a great place to do business, continuing to say that more work has to be done to position it as the best place in the world to start, grow and invest in food manufacturing.

“Our 10-year ambition lays down a challenge which is bold and achievable, will unlock investment and deliver prosperity for communities right across the UK.”

Kate Dearden, minister for consumer goods, said the sector is key to economic growth. “Not only does it support key facilities and supply chains, but also hundreds of thousands of jobs across the country.

“Through our Trade Strategy we are removing barriers and creating exciting new export opportunities for the sector, helping to boost productivity, investment and jobs as part of our Plan for Change.”

While secretary of state for the environment, Emma Reynolds, added, “We’ve launched our Good Food Cycle in partnership with industry to create the conditions for the food sector to thrive and grow sustainably, including investment in innovation and productivity, and are negotiating an SPS agreement with the EU to cut red tape and costs.

“Kickstarting growth is the government’s number one mission, and we’re determined to make the UK the best place in Europe to make and export food and drink.”

Read the FDF Ambition for Growth here.