Cold Chain Federation Urges Government to Protect Jobs and Support Critical Sector in Autumn Budget
The Cold Chain Federation has written to Chancellor of the Exchequer Rachel Reeves urging her to recognise the vital role the cold chain plays in the UK economy and to deliver measures in the Autumn Budget which protect jobs, control business costs, and enable continued investment in green energy.
The Cold Chain Federation Chief Executive, Phil Pluck, points out the consequences of not doing so will place vulnerable populations at risk of more food inflation at a time when they can least afford more pressure on their household incomes.
His letter also highlights the risk to SME businesses in the sector, as government investment declines and costs increase, making them less competitive.
Jobs have already been lost as a direct result of employment cost increases imposed on cold chain businesses, which have seen thousands made redundant throughout the entire supply chain up to and including food retailers.
Pluck said “This government states that it wishes to support the most vulnerable populations, the most vulnerable workers, and the most vulnerable communities. Recent government decisions have seen exactly the opposite. The upcoming budget must recognise this and see that industry support is now needed, not more industry taxation.”
In his open letter, Pluck highlights that the cold chain sector contributes over £14 billion to UK GDP every year, supports more than 184,000 jobs, and plays an essential role in keeping food and medicines moving across the country.
The letter warns that recent increases in National Insurance, the National Living Wage, and new regulatory measures are adding hundreds of millions of pounds to operating costs in a high-volume, low-margin industry. Combined with the withdrawal of some renewable energy support schemes, these pressures risk slowing down investment, reducing competitiveness (particularly for SMEs), and leading to further job losses.
Pluck writes: “We are a sector that wishes to adopt renewable alternatives in terms of energy investment and wishes to support our communities… in terms of employment and employment opportunity. This Budget must be one that supports us, not adds further cost to an industry that has already seen the negative effects of recent cost increases.
The Cold Chain Federation is calling on the Chancellor to:
• Take a cautious approach to any increase in the National Living Wage in 2026, as also recommended by the Resolution Foundation.
• Freeze any further employment cost rises for cold chain employers in 2026.
• Recognise the sector’s critical role in the UK’s food and medical supply chains and work with the Federation to accelerate the transition to secure, renewable energy sources.
• Review proposed additional employment regulations and mitigate their cost impacts.
The Federation also welcomes the Government’s new Modern Industrial Strategy and has expressed its commitment to working closely with ministers to ensure the strategy delivers for the cold chain and the UK economy.
The full open letter can be read here.
Contact
Phil Pluck, Cold Chain Federation
Email: [email protected]
Phone: 07392 452150
About the Cold Chain Federation
The Cold Chain Federation is a trade association that represents businesses that run the temperature-controlled supply chain in the UK. Our members are businesses operating frozen and chilled storage facilities and/or temperature-controlled distribution vehicles plus companies with mutual commercial or policy interests.
The Cold Chain Federation is committed to ensuring that the UK’s cold chain is safe, efficient, and sustainable. The organisation works with its members, government, and other stakeholders to develop and implement best practice standards, promote innovation, and raise awareness of the importance of the cold chain.
www.coldchainfederation.org.uk
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