The Federation of Wholesale Distributors (FWD) has called on the Government to take five practical steps to ease cost pressures across the food supply chain and create conditions for wholesalers to invest and grow.
FWD members have signed an open letter to Chancellor John Healey, warning that rising costs faced by wholesalers do not stop at the depot but are passed through the supply chain to independent retailers, pubs, restaurants and public-sector organisations.
The organisation said action is needed to help keep food affordable while supporting local economies and the businesses responsible for distributing food across the UK.
Its five priorities are to:
- Protect essential wholesale depots from unintended business rates increases.
- Use public procurement to support British food and local suppliers.
- Make wholesale and logistics a route into good work.
- Reduce food and packaging waste without creating avoidable supply-chain costs.
- Keep food distribution moving while supporting the transition to cleaner fleets.
FWD CEO James Bielby said wholesalers were operating under multiple cost pressures and needed greater certainty to plan and invest.
“No single cost operates in isolation,” he said. “What wholesalers need is greater predictability and recognition of the cumulative pressures on businesses operating on tight margins.”
Bielby added that FWD members were ready to work with the Government to turn the measures outlined in the letter into action.
Prime Minister Andy Burnham has previously backed higher business rates on warehouses and large out-of-town developments to help fund lower rates for pubs and selected high street businesses.
However, supermarkets and retail groups have cautioned that such a move would not just hit online giants such as Amazon, as many of the UK’s biggest store-based retailers rely heavily on large distribution centres.
Analysis from Savills, cited by The Telegraph, found that high street retailers occupied 97m sq ft of warehouse space in 2024, compared with 69m sq ft used by online retailers.
Separate analysis from business rates consultancy Ryan found that the 10 warehouses facing the largest business rates bills are operated by Lidl, Tesco, John Lewis, Sainsbury’s and Marks & Spencer.