Food for Thought with Atticus Partners
Feasting on Controversy: The Autumn Budget, Farming Protests, and the Battle for Britain’s Rural Future
Rachel Reeves’s first Budget
The Autumn Budget included a £5 billion commitment to support agricultural sustainability and the establishment of a Border Security Command. However, this was overshadowed by the farming community’s anger following the announcement of changes to inheritance tax, leading to protests in Westminster.
For the business community, the immediate challenge lies in managing increased operational costs, with higher National Insurance contributions looming and a rise in the National Minimum Wage to £12.21 per hour for workers aged 21 and over. Business rates relief will also be reduced, adding additional pressure. Despite this, recognition of the economic and social importance of British pubs and commitment to supporting smaller breweries was shown through a 1.7 per cent reduction in draught alcohol duties, though duty rose on other alcoholic drinks.
There was also an increase in the Plastic Packaging Tax rate for 2025-26, which could have a knock-on effect within the food and drink industry. While environmental measures, such as mass balance accounting for recycled plastics, are being viewed positively, the timing of these changes amidst ongoing inflation and financial pressures has left many businesses uncertain about their long-term viability. The task now for businesses will be balancing these rising costs with the need to adapt to new sustainability and packaging regulations.
A new opposition
With the Conservative Party’s new Shadow Cabinet now in place, Party Leader Kemi Badenoch has wasted no time expressing opposition to Labour’s proposals, starting with the “family farm tax”. Badenoch argues it will force farmers to sell land, thereby threatening food security and increasing the UK's reliance on food imports.
Meanwhile, the newly appointed Shadow Environment Secretary, Victoria Atkins, has also been hitting the Government hard on food security and farming resilience. She has slammed Labour’s Budget cuts to agricultural and business property reliefs, warning that this will devastate family farms with inflated tax bills. The Conservatives are clearly positioning themselves as defenders of the farming community, arguing that protecting the land for future generations is key to the UK’s long-term food security. With a few well-aimed jabs at Labour, they’re setting the stage for a robust debate on how best to safeguard the rural economy, and also they hope preparing the ground to take back dozens of the rural seats they lost in July.
New faces of the EFRA Select Committee
Elsewhere, the newly appointed Environment, Food, and Rural Affairs (EFRA) Select Committee brings together a mix of fresh talent and experienced rural advocates, ready to hold Defra’s Ministerial team to account. Led by Alistair Carmichael (Lib Dem, Orkney and Shetland), the Committee features members such as Jenny Riddell-Carpenter (Lab, Suffolk Coastal), a strong voice for pig farmers, and Henry Tufnell (Lab, Mid and South Pembrokeshire), whose family farming background informs his focus on food security.
The EFRA Committee has already launched a stakeholder survey to gather industry opinions on priorities for the coming year. Key areas of focus include navigating post-Brexit agricultural policies, scrutinising the rollout of Environmental Land Management schemes, and addressing food affordability amid rising inflation.
Pig and poultry producers, facing challenges from disease outbreaks and high feed costs, will be particularly interested in discussions on trade standards and biosecurity measures. Insiders suggest the Committee may also investigate food waste, with potential inquiries into how Government policies can better support surplus food redistribution programs.
From the fallout of the Autumn Budget to fresh faces on the EFRA Committee and a Shadow Cabinet shake-up, if you’re interested in how any this could impact you and your organisation please get in touch at foodanddrink@atticuscomms.com
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Insights from Atticus Partners
Does the Budget herald the death of the family farm? Junior Consultant Eluned Anderson examines the political fallout from the Budget for the countryside. Read her article here.
Atticus Out and About
The Atticus team recently attended YouGov’s event on ‘Conscious Consumerism’. It was fascinating to learn more about what drives consumers when making purchasing decisions, from environmental factors to labour practices.
According to the research, the top factors driving conscious consumerism are making long-lasting and durable purchases, considering the environmental impact of products, reducing waste and practising recycling/upcycling, and being mindful of where and how consumers spend their money.
What We've Been Reading
UK won’t weaken food standards to land a Trump trade deal, minister says Food Minister Daniel Zeichner has ruled out any future trade deal with the United States that would undermine British food standards. His comments came amid fears the UK could face mounting pressure from the US to weaken agricultural standards to secure a trade deal and skirt tariffs following the election of Donald Trump last month.
Aldi launches new beers to tackle food waste Supermarket Aldi has launched two new beers which aim to tackle food waste. By using surplus or wonky ingredients such as Tiger bread and berries, these products will prevent an estimated 4,000 loaves of bread and almost a tonne of fruit from ending up as waste. Freedom Brewery will be producing Misfits Summer Fruits, while Toast Brewing is producing Another Round Session IPA.
Unhealthy food costing UK more than £260bn a year, report says A recent report by the Food Farming and Countryside Commission estimates that unhealthy food habits are costing the UK around £268bn a year. The report calculated both the direct and indirect impact of diet-related ill health to come up with the annual total, including on lost economic productivity, the health and social care system, and welfare budgets.
UK retailers warn Reeves of £7bn hit from budget tax rises A letter signed by 79 representatives from the British Retail Consortium (BRC), including Tesco, Boots and Marks & Spencer, has been sent to Chancellor Rachel Reeves warning of the financial impact of the impending increase in the National Living Wage and employer National Insurance Contributions. According to the BRC, absorbing the impact of higher costs will mean higher prices for consumers, smaller pay rises, jobs cuts and shop closures.
For more information about Atticus’s work in the food and drink sector, or if you have any questions about how we can support you, please get in touch via foodanddrink@atticuscomms.com.