UK food and drink wholesalers have welcomed several measures outlined in the Kingās Speech, saying the proposed legislation could improve trade, tackle late payments and strengthen supply chain resilience for the food and drink sector.
Responding to the governmentās legislative agenda, wholesale body Food and Drink Wholesale UK today (May 14) highlighted a number of Bills it believes will have the biggest impact on wholesalers and suppliers, particularly those operating across the convenience retail sector.
Among the most significant proposals is the European Partnership Bill, designed to create a framework for closer UK-EU cooperation on food and drink, emissions trading and electricity. Emissions trading and electricity, the Small Business Protections (Late Payments) Bill, Competition Reform Bill, Cyber Security and Resilience Bill were also pointed out as the key ones by the wholesale body.
The government said the agreement could add up to Ā£5.1bn annually to the economy, boost agricultural exports to the EU by 16 per cent and ease border delays for lorries. Industry leaders also noted the potential benefits for the movement of food and plants between Great Britain and Northern Ireland.
Another significant development pointe out by FWD is Competition Reform Bill.
Under the current system, some of the most significant CMA decisions are led by an independent CMA Panel, and members of the CMA Board are legally prevented from engaging in these decisions.
The Bill will give the CMA Board a role in decisions on mergers and market investigations, improving accountability to Parliament, businesses and the public. The government will ensure appropriate governance and procedural safeguards to maintain expert decision-making that is independent of government.
FWD states, "The Bill will speed up market reviews so that where markets are not working properly ā such as when consumers face high prices or businesses face barriers to entry ā competition problems are identified and addressed more quickly. In most cases, reviews will take no longer than 18 to 24 months.
"This means competition problems in markets can be fixed faster, so consumers and businesses can feel the benefit sooner. Any remedies placed on businesses will be regularly reviewed, so they remain necessary and proportionate.
"Where appropriate, regulators for specific sectors will be able to take responsibility for ongoing remedies, reducing the number of regulators that businesses need to deal with."
This bill will give businesses greater certainty about whether a merger is likely to be reviewed in the UK. This will help businesses plan transactions with greater confidence, while ensuring the CMA can continue to intervene where a deal could harm competition and risk higher prices or reduced choice for UK consumers.