Cold Chain Federation Warns Budget Business Rate Reforms Will Hit Food and Medicine Prices

The Cold Chain Federation has written to Chancellor Rachel Reeves urging her to urgently review proposed Business Rate Reforms which would impose significantly higher costs on warehouses that store vital food and medical supplies in the UK.

The cold chain sector is a cornerstone of the UK economy, contributing over £14 billion to GDP every year and employing more than 184,000 people. Over 50% of all food passes through the UK’s critical cold chain, supported by around 470 temperature-controlled warehouses and 100,000 temperature-controlled vehicles. In addition, over 20% of the UK’s pharmaceutical supply network, including life-saving medicines, vaccines and blood products, relies on this infrastructure.

The government’s Transforming Business Rates policy paper, released last year, sets out proposals for a new, higher business rate multiplier for all properties with Rateable Values (RVs) of £500,000 and above. Although intended to target online retail giants, these reforms would unfairly impact around 100 of the UK’s largest cold stores – facilities which are large because of operational efficiency, not high profit margins.

Phil Pluck, CEO of the Cold Chain Federation, said “We have already seen food inflation as a result of recent employment cost increases imposed by this government.

We are now facing even further increases in the Autumn Budget due to Business Rate Reforms. This (new move) affects the most vulnerable members of our society as well as wiping out thousands of jobs from the food supply sector.

The government’s aim is to hit large scale online retailers. But food and medicine will be caught in the crossfire. And this will negatively affect vulnerable people and business in the UK whilst aiming at large online businesses.”

With the new super tax set to be revealed in the Autumn Budget, the Cold Chain Federation is calling for exemptions to protect cold stores and temperature-controlled warehouses, warning that without action, the reforms will worsen food and pharmaceutical inflation and undermine the government’s commitment to protecting the high street and easing cost of living pressures.

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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