Wholesale body Food & Drink Wholesale UK (FWD) has welcomed the Chancellor’s decision not to proceed with further increases in business rates on large warehouses, following weeks of campaigning by the sector.
The decision by the Chancellor John Healey, provides welcome relief for wholesalers, who already face significant operating costs.
Calls to abandon the “warehouse tax” were at the heart of FWD’s recent campaign, Five Practical Steps to Cut the Cost of Food and Power Local Growth.
Elsewhere, the Chancellor announced an extension of the fuel duty freeze, maintaining the existing 5p-per-litre reduction rather than proceeding with planned increases in early 2027. The decision will provide further relief for wholesalers, whose distribution networks are essential to keeping food moving across the country.
However, FWD has warned that these measures must be considered alongside continued pressures from employment costs, energy prices and regulation, with a further increase in the National Living Wage expected to add to the cost of doing business.
Commenting on the Budget, James Bielby, Chief Executive of Food & Drink Wholesale UK, said: “We are delighted that the Government has listened to the concerns of wholesalers and decided against further increases in business rates for large warehouses.
"This is an important win for our sector and recognises the vital role wholesale depots play in keeping businesses trading and communities supplied.
“We also welcome the extension of the fuel duty freeze and measures to reduce the cost of everyday food and drink products. However, wholesalers continue to face significant pressures from employment, energy and regulatory costs, which ultimately feed through to businesses, public services and consumers.
“The Government has committed to delivering good growth in every postcode, and wholesale is central to making that ambition a reality. Our members support British suppliers, create jobs and keep local economies moving.
"We look forward to working with ministers to deliver growth, create opportunities for young people and ensure the food and drink supply chain can continue keeping food affordable for communities across the country.”