POLICY PULSE – JANUARY 2026

POLICY HEADLINES

What’s Happening

CCF INCREASES PRESSURE ON GOVERNMENT OVER BUSINESS RATES REFORM

If there was any doubt on the anti-business approach of the Chancellor from tax rises such as last year’s increase in employer NIC contributions, April’s ill-conceived business rate reforms put the nail in the coffin, risking heaping more cost on many sectors, including the critical cold chain. CCF members are encouraged to check their new premises valuations and estimate business rate bills as the specific impact of these reforms is highly variable to individual sites. Most will see increases, and whilst for some it may be relatively small, the unlucky amongst you will see eye-watering increases. Part of the reforms sees a new ‘higher rate’ for large businesses, aimed at ‘online giants’ but catching some cold storage operators in the unintended crossfire.

The CCF has written repeatedly to the Chancellor over the last 6 months warning of the impact the new business rate policy will have on food inflation, local growth and jobs. We are urging the Government to relieve critical cold storage businesses from the new higher rate and in our most recent letter went a step further in calling for the revaluation implementation to be postponed until a proper analysis of its impact on food and pharmaceutical supply is undertaken. Longer term, we will also be engaging the Valuations Office Agency to try to seek more information about how the value of cold storage is assessed as our research has identified this to be applied inconsistently.

Members should consider  a challenge to the revaluation of the rateable value of their site, especially if they are close to the £500k threshold, check whether you are eligible for Transitional Relief which limits the Y1 increase to 30% and consider writing to your local MP to outline the impact tax increases have on local jobs and your growth plans – we have created a letter template to get you started which can be downloaded here.

ENERGY ACROYNM BONANZA: CCA, BICS and NESO

The latest CCA Scheme, affectionately known as ‘CCRA3’ has commenced, meaning the Environment Agency have been peppering the inboxes of cold store operators with technical emails. Please pay attention to these because all facilities must reply providing their assent to the new scheme. The commencement of CCRA3 means that new sites can now apply each year (instead of every 2 or 3 years) to enter new sites to the scheme.

Energy costs remain a major challenge for operators, with little to no support from the Government to critical industries like the cold chain, beyond the CCA. This month the CCF responded to the Governments consultation on a new ‘British Industrial Competitivity Scheme’, which will provide major bill support for key manufacturing industries (but not cold chain) to urge the Government to be bolder in supporting businesses on energy, especially those who support manufacturing sectors, operate critical infrastructure and are energy intensive – all of which apply to cold stores.

The Network Energy System Operator, or NESO, is the NGO responsible for balancing the UK energy grid. With the grid becoming more dependent on hard to predict renewables, NESO have a clear strategy to increase the utilisation of demand response mechanisms aimed at industries. Whilst the thermal energy of a cold store is ideal for demand management, the current mechanisms largely either don’t work or provide sufficient incentives for cold chain businesses to participate. This month we’ve met with NESO to be clear that they are missing the huge opportunity from cold storage. Whilst the meeting was in some ways frustrating, with a familiar lack of understanding on how cold stores and business actually operates, we are committed to working with energy systems operators and distributors on opening up mechanisms that work for both NESO and cold chain operators.

TRANSPORT REFRIGERATION DECARB GATHER PACE, WILL THE GOVERNMENT BACK INDUSTRY ACTION?

One of the biggest changes in the cold chain across the last 10 years has been the development of new innovations to reduce the impacts of diesel transport refrigeration. The cold chain is leading the way in transport emission reductions with electric and hybrid TRUs and even eHGVs starting to become commonplace in depots around the country.

This progress has been entirely business led, with little support or acknowledgement from the government. This month we have written to the Transport Minister asking for an update on the release of the final recommendations from the DfT sponsored Zemo Partnership report into emissions from TRUs. Although not yet released, we want to press ahead with expected recommendations such as agreeing industry supported phase out dates for diesel TRUs and exploring what incentives the Government can provide members looking to go green. We’re meeting with key DfT officials in February to try to bring forward action and look out later this year for a CCF survey on operator attitudes to the new era of low or zero carbon TRUs.

WHAT TO WATCH

What’s Ahead

• UK-EU Proposals for new trade agreement (expected throughout 2026): The UK’s commitment to agree a new trade deal with the EU will bring yet another major shakeup to SPS requirements for animal health certification and checks. Expect draft proposals later this year.
• Consultation on Diesel HGV Ban (closes 17^th March 2026): The government has launched a consultation on proposals to phase out new diesel HGVs, as part of its wider decarbonisation plans. The consultation explores potential phase-out dates, how different vehicle weights and use cases could be treated, and what supporting measures may be needed to enable the transition, including charging and refuelling infrastructure. These proposals are particularly significant for the cold chain, where HGVs are essential to maintaining food security and the reliable movement of temperature-controlled goods. We are reviewing the consultation in detail and engaging with government to ensure the policy recognises the operational realities of cold chain logistics, the current readiness of zero-emission HGV technology, and the need for realistic, achievable timelines.
• F Gas Consultation Response (expected by Summer 2026): Defra’s F-Gas proposals released late last year will bring a faster phase down of refrigerants used in cold storage, blast freezing and transport refrigeration. We called for a slower ramp up of the phase down to allow businesses more time to prepare. Revised proposals are expected in 2026 ahead implementation in January 2027.
• New Transport Decarbonisation Plan (expected 2026): The DfT’s Future Freight Plan, released in 2022, brought funding for skills and a small amount of funding. A new strategy is expected in 2026 which could bring new commitments to support the uptake of eHGVs and the development of hydrogen too.
• Publication of Zemo Partnership recommendations for government support for reducing emissions from transport refrigeration units (expected Spring 2026)

ADVOCACY SPOTLIGHT

What we’re doing

OUR REFRESHED POLICY APPROACH

Over the past few months, we’ve been working behind the scenes to reflect on our policy approach – reflecting on what we’ve already delivered, what’s changed, and where we want to focus next.

2025 brought no shortage of challenges for you and for the cold chain sector as a whole. From rising costs, including higher employer National Insurance contributions and confirmed business rate increases from April, to growing global instability, cyber risks and climate impacts, the operating environment has become even more complex. Despite this, the sector has remained resilient, and those pressures have helped sharpen our understanding of what the cold chain truly needs, deserves and is capable of achieving.

One thing is clear: the cold chain is more critical now than ever before.

Last year also saw another Cabinet reshuffle, giving us a timely opportunity to review how we engage with policymakers – who we need to be speaking to, and where our voice can have the greatest impact. That process has helped us refine our stakeholder engagement and focus our policy efforts more clearly.

As we look ahead, we now have a renewed sense of direction and a clear set of objectives that will guide our work on your behalf. This refreshed approach builds on our 2024 manifesto and retains the same core priorities you’ll recognise, but with clearer policy asks and a more targeted approach for achieving them.

Put simply, we’re on the same mission, driven by the same purpose, just with a refreshed strategy.

Our policy work will focus on these core areas:

Recognising the Critical Value of the Cold Chain

• Dedicated cross-government ministerial responsibility for the cold chain
• Formal recognition of the cold chain as Critical National Infrastructure (CNI)
• Inclusion of the cold chain in national risk, contingency planning and preparedness frameworks

Sustainability, Energy Resilience and Security

• Government recognition of the CCF’s cold chain microgrid vision
• Clear plans to secure energy supply to critical cold chain sites during emergencies
• Recognition of cold storage as a key partner in the Clean Flexibility Roadmap
• Clarity on future energy efficiency expectations beyond current schemes

Zero-Emission Refrigerated Transport

• A government-endorsed, industry-led phase-out pathway for diesel TRUs
• Voluntary TRU registration and incentives to support early adopters of zero-emission technologies

Other Policy Priorities

• Support for temperature setpoint optimisation, guided by robust evidence
• Reducing trade barriers and friction for temperature-controlled goods
• Clarity and assurance on F-Gas regulation changes and training standards

Alongside these core priorities, we remain committed to representing members on ongoing and emerging policy developments as they arise, responding quickly and acting where it matters most.

You can read our full policy strategy here.

NAO REPORT ON FOOD RESILIENCE TO IDENTIFY COLD CHAIN DISRUPTION RISK

A key policy priority remains ensuring the cold chain is recognised for its essential role in food security, national resilience, and pharmaceutical supply. With growing risks to the UK’s supply chains, including cyber-attacks, energy instability and climate impacts, we’re focused on making sure policymakers understand the importance of the cold chain and provide the support needed to keep products moving and communities fed and medicated during times of disruption.

At the end of last year, the National Audit Office (NAO), an influential group responsible for holding the work of Parliament to account, announced a Defra backed study looking at the resilience of the UK food supply chain to disruptions. We identified this as a critical opportunity to ensure the cold chain’s role in food resilience is fully understood.

With a report planned for the summer, one of their first ports of call for intelligence gathering was the Cold Chain Federation. In our first meeting and in further planned meetings we’ll be pressing home our policy recommendations on resilience (see above) and providing examples of how real threats are impacting food and pharmaceutical storage and distribution.

NAO reports and recommendations are usually considered by a Parliamentary Select Committee and often taken forward into policy, so the study and its focus on cold chain is the strongest indication yet that the government are starting to listen. You can find out more about the study here.

TEMPERATURE CHECK

We’re continuing to step up our engagement with government and local MPs, making the case for the cold chain and highlighting its vital role in keeping food and essential goods moving. One of the most effective ways to do this is by showing policymakers the cold chain in action and giving them a first-hand look at the work our members do every day, across the country.

We’d really appreciate you voting in our poll to let us know whether you’d be open to hosting a local MP visit at your site. If you’re interested, or have any questions at all, please get in touch with the CCF team and we’ll be happy to support you. The poll will close 10/02/2026.

FOR FURTHER INFORMATION OR FEEDBACK ON ANY ISSUES IN THIS BRIEFING PLEASE CONTACT MADDY COUPE POLICY MANAGER [email protected].

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