{"id":67895,"date":"2025-04-07T11:54:35","date_gmt":"2025-04-07T10:54:35","guid":{"rendered":"https:\/\/grayling.com\/?p=67895"},"modified":"2025-04-07T13:44:57","modified_gmt":"2025-04-07T12:44:57","slug":"government-spring-into-action-on-fmcg-businesses-regulation","status":"publish","type":"post","link":"https:\/\/grayling.com\/de\/news-and-views\/government-spring-into-action-on-fmcg-businesses-regulation\/","title":{"rendered":"Government springs into action on FMCG sector regulation"},"content":{"rendered":"<p><span data-contrast=\"auto\">Last month\u2019s Spring Statement marked a new season for Government policy-making \u2013 a Treasury team on the hunt for revenue-raising measures to turn around the gloomy OBR growth forecasts. The pressure to deliver is on, and FMCG businesses will be shouldering a big portion of this burden.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As the days get longer, so does the business to-do list. <strong>Grayling&#8217;s <\/strong><a href=\"https:\/\/26084246.hs-sites-eu1.com\/en-gb\/en\/uk-trends-report-2025\" target=\"_blank\" rel=\"noopener\"><strong>annual trends report<\/strong> <\/a><\/span><span data-contrast=\"none\">surveyed 500 senior business leaders,<\/span><span data-contrast=\"auto\"> which found 57% are concerned regulatory risks have increased in the past 12 months, and 39% said regulatory updates are the biggest issue to tackle in 2025.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So how can businesses navigate the challenges lying ahead? Here\u2019s what you need to know.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">Packaging Extended Producer Responsibility (pEPR) risks undermining the Government growth agenda \u2013 and there\u2019s just 60 days to get this right.<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">pEPR has been in the long grass for seven years. And yet, with invoicing starting this October, the scheme is far from \u2018roll-out ready\u2019.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The CBI estimated the policy could cost manufacturers \u00a32 billion annually \u2013 on top of other mounting costs such as business rates bills doubling, National Insurance contributions rising, and employment rights reforms adding a further \u00a35 billion.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But outside the industry, pEPR had gone somewhat under the radar &#8211; until now. In fact, pEPR Google searches are the highest they\u2019ve ever been: a staggering 12,100 this February.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Government is in a tight spot. With mounting scare stories of potential job losses and manufacturing site closures, Number 10 will be keen to avoid any announcements that contradict its central mission: growth, growth, growth.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This has been compounded by the <\/span><a href=\"https:\/\/obr.uk\/efo\/economic-and-fiscal-outlook-march-2025\/\"><span data-contrast=\"none\">OBR\u2019s Spring Forecast<\/span><\/a><span data-contrast=\"auto\">, which admits pEPR will mean no material impact on recycling rates or packaging waste volumes in the next five years.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">FMCG businesses face a short but crucial window to feed in evidence that pEPR fee levels stand contrary to that all-important growth agenda, before PackUK publishes the final base fees in June.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">The heat is about to turn up on food and health policy.\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">Defra has promised a new Food Strategy this summer. Will this be a resurrection of <\/span><a href=\"https:\/\/www.nationalfoodstrategy.org\/\"><span data-contrast=\"none\">Henry Dimbleby\u2019s 2021 iteration<\/span><\/a><span data-contrast=\"auto\">? If so, we could see taxes on sugar and salt used in processed foods, a clamp down on so-called Ultra-Processed Foods, and a revisit of the previously floated \u2018meat tax\u2019.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">And it\u2019s not just Government considering its next steps to tackle HFSS products \u2013 the EFRA Committee is pursuing the pre-election <\/span><a href=\"https:\/\/committees.parliament.uk\/work\/8766\/fairness-in-the-food-supply-chain\/\"><span data-contrast=\"none\">inquiry into Fairness in the Food Supply Chain<\/span><\/a><span data-contrast=\"auto\">, which saw multiple brands face a tough rap for rising food prices and product formulation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, Cabinet-level disagreements over the merits of sin taxes and concerns over placing additional financial burdens on consumers could put a halt on punitive action. Whilst the Strategy contents is far from certain, policy development is already underway and will provide a roadmap to the next 10-years of food and farming policy.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">Ignore re-use at your peril \u2013 it\u2019s the new Circular Economy buzz word.\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">Just 12-months ago, the term \u2018circular economy\u2019 left political heads scratching. But with a refreshed ministerial team and a new <\/span><a href=\"https:\/\/www.gov.uk\/government\/groups\/circular-economy-taskforce\"><span data-contrast=\"none\">Circular Economy Taskforce<\/span><\/a><span data-contrast=\"auto\"> up and running, it\u2019s back in the political lexicon.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As the Taskforce gets ready to report this autumn, there is a clear ambition to shift towards new innovations higher up the waste hierarchy. Cue re-use and repair, which should breathe new life into Labour\u2019s sustainability ambitions and find an enthused bench of political advocates in the youngest, most environmentally conscious Parliament we\u2019ve seen.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">FMCG businesses must leverage industry experience to get on top of this political trend early and offer constructive solutions, to get ahead of mandatory targets with voluntary action.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">Defra ministers may be tough to engage, so it\u2019s time to think outside of the box.<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">Defra has recently proved a tough nut to crack. Commentary on X evidences a 69.3% negative approval rating for Defra Secretary Steve Reed MP, and a 73.6% negative rating for the Department itself. One MP even stated in the Commons last month, \u201cI am starting to feel like Defra ministers are purposefully ignoring me\u201d.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With a raft of new Defra policy papers and strategies due for publication this year, as well as Dan Corry\u2019s recent <\/span><a href=\"https:\/\/www.gov.uk\/government\/publications\/delivering-economic-growth-and-nature-recovery-an-independent-review-of-defras-regulatory-landscape\"><span data-contrast=\"none\">regulatory review<\/span><\/a><span data-contrast=\"auto\">, the Department will be under increasing scrutiny to ensure all announcements deliver against those central Labour missions \u2013 under the watchful eye of Cabinet Office.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you\u2019re struggling to get traction, it\u2019s not time to throw in the towel. Instead, we need to broaden the net to the rising starts who can make your case where it matters. From the Labour mission champions to the Labour Growth Group, these are the individuals you should be getting facetime with \u2013 and bringing on board as advocates.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"auto\">The one takeaway? <\/span><\/b><\/h5>\n<p>With mounting costs and the regulatory burden only increasing \u2013 now is the time to ensure your organisation\u2019s voice is heard in the policy-making process.<\/p>\n<p><i><span data-contrast=\"auto\">To get in touch with our <a href=\"https:\/\/grayling.com\/what-we-do\/public-affairs\/\" target=\"_blank\" rel=\"noopener\">FMCG policy<\/a> and <a href=\"https:\/\/grayling.com\/what-we-do\/corporate-affairs\/\">corporate reputation team<\/a>, please contact <\/span><\/i><a href=\"mailto:victoria.murphy@grayling.com\"><i><span data-contrast=\"none\">victoria.murphy@grayling.com<\/span><\/i><\/a>.<i><span data-contrast=\"auto\">\u00a0<\/span><\/i><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Last month\u2019s Spring Statement marked a new season for Government policy-making \u2013 a Treasury team on the hunt for revenue-raising measures to turn around the gloomy OBR growth forecasts. The pressure to deliver is on, and FMCG businesses will be shouldering a big portion of this burden.\u00a0 As the days get longer, so does the&#8230;","protected":false},"author":91,"featured_media":67896,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[673],"tags":[136,651,138],"class_list":["post-67895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-views-blogs","tag-corporate-affairs","tag-fmcg","tag-government-relations-public-affairs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Government Springs into Action on FMCG Businesses Regulation<\/title>\n<meta name=\"description\" content=\"The UK Government is gearing up to publish a raft of new policies this summer that will have big impacts for FMCG businesses...\" \/>\n<meta name=\"robots\" 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