Federation of Wholesale Distributors Christmas Drive-Thru’ drop-in

I spoke to Martin Williams, pictured with me, the associate director of the Federation of Wholesale Distributors at their ‘Christmas Drive-Thru’ drop-in’ event on 3 December 2024.

There are 640 wholesalers who are members of the FWD they supply food to schools, hospitals, prisons, care homes, shops and pubs  providing a link between large food and drink manufacturers and shoppers. Martin said the FWD support the minimum wage and recognize the effect this has on the sector and the need for apprentices.

Martin said these are the main issues that affect his members:  

Retail Crime is a growing threat, with rising theft risks in warehouses. Including wholesale workers in the new Police and Crime Bill, retail crime protections are critical to protecting wholesalers.

Business Rates Reform in the recent Budget introduces a new rate targeting “online retail warehouses” that unfairly penalises wholesalers operating distribution centres. This misclassification raises costs for essential wholesale facilities that support local shops, schools and public services. A fairer classification is needed to avoid placing an undue financial burden on the sector.

Rising Employment Costs from the 6% National Living Wage increase and higher National Insurance contributions add £110 million in costs for wholesalers. While we support fair pay, balancing these costs with necessary investments is challenging and may affect business stability.

The Growth & Skills Levy brings needed flexibility, but ensuring wholesalers can access relevant training programs is key to addressing skill gaps  in logistics and technology. Skills England should prioritise courses that meet the sector’s needs to strengthen the workforce and support long-term growth.

For Public Sector Food Supply, the Holiday Activities and Food (HAF) Programme provides vital support to children but requires sustained funding beyond 2025. Additionally, rising business costs risk impacting the quality and affordability of food supplied to schools, hospitals, and other institutions. Extending HAF funding and limiting cost pressures will help maintain essential services.