Review into labour shortages charts 10 steps to sustainability

Former G’s CEO John Shropshire, OBE, has today (30 June) published his much-anticipated independent review into labour shortages in the UK food supply chain

Compiled and analysed by Shropshire and his expert panel team over the past 10 months, the review considers the challenges facing UK food and farming businesses to recruit and retain a sufficient workforce.

The review was commissioned in August 2022 after the Government Food Strategy recognised the UK horticulture sector cannot sustainably rely on migrant labour.

Its objective is to provide industry and government with recommendations to consider the roles of automation, domestic employment and migration routes to mitigate and reverse labour shortage trends in the food supply chain.

Launching the review, Shropshire said: “This exploration has thrown light on the pivotal challenges this indispensable sector faces, including issues related to workforce recruitment and retention, skills development, and automation.

“England’s food supply chain is an extraordinary network that is fundamental to the nation’s economy and the security of its citizens. Yet, we face significant obstacles in recruiting and retaining a competent workforce in this vital sector. Factors such as low unemployment rates, shifting labour market dynamics, and diminished access to migrant workers have exacerbated these challenges.

“Every job within the food supply chain is essential and should never be dismissed as menial or unskilled. Each role ensures the smooth operation of the entire system, from farmers and agricultural workers to food processors and distributors. All contribute to producing and delivering the food that sustains our nation and allows us to thrive.”

The review provides 10 key recommendations on how to ensure businesses can access the labour they require on a more effective basis, to put the sector on a more sustainable, long-term footing.

The insights gathered from the review will inform the ongoing and future policy work of the government, particularly in addressing labour shortages. The recommendations aim to enable businesses to access the labour they require more effectively, facilitating continued growth and development of the sector.

The report focuses on the labour needs of the production and processing sectors, which are critical for producing food. The review’s 10 recommendations are as follows:

1) Implement a comprehensive strategy to enhance sector attractiveness

To improve the sector’s image, the Food and Drink Sector Council (FDSC) must lead a comprehensive strategy that includes:

• Communication campaigns targeted at changing public perception of the sector
• Developing careers advice provided by schools and education or training providers
• Reviewing methods through which pay, staff benefits and conditions can be improved
• Recognition of what hard-to-reach and disengaged groups can offer businesses

Timing: short term

Responsibility to deliver: industry

2) Access to migrant labour

• Announce the replacement of the seasonal worker scheme by the end of 2023, guaranteed for a minimum of five years
• Consider removing the cap on the total number of visas and extend the length of visas to nine months
• Selected businesses should have the ability to directly sponsor workers
• Employers should bear responsibility for the cost of the NHS health surcharge
• A robust enforcement mechanism must be implemented and managed by the GLAA to reduce labour exploitation.
• Widen the eligibility criteria for the seasonal route to reclassify occupations so they become eligible and reduce the high financial costs to access the route
• It is essential that Shortage Occupation List (SOL) reviews take place more frequently and the English language requirement is relaxed.

Timing: short term

Responsibility to deliver: government

3) Invest in domestic workers

• Businesses should provide clear training and career development plans for workers, focusing on skills that are specific to the food supply chain sector.
• Sectoral organisations should collaborate to create a portal which garners labour market data that businesses can access.
• Government to consider providing businesses with access to HR support via Local Enterprise Partnerships.

Timing: medium term

Responsibility to deliver: government and industry

4) Reform the apprenticeship levy

Overhaul the ’Skills and Development Levy’ in collaboration with industry input to provide a highly skilled workforce and enable greater access for SMEs. To achieve this:

• Introduce a flexible approach that includes a wider range of training, simplify the application process, and introduce an R&D-style tax record system
• Increase flexibility in the use of funding
• Provide clarity on the use of the expired Levy funding 

Timing: medium term

Responsibility to deliver: government and industry 

5) Build on skills supply collaboration

Greater collaboration between the government, education providers and industry through formalised engagement, focusing on informing policy-making, skills development, investment in training and education provision.

Timing: long term

Responsibility to deliver: government, education bodies and industry 

6) Support food career curriculum delivery

Attracting the next generation of entrants into the food supply chain must be seen as a matter of national importance in assisting with the security of the sector. Higher education funding bodies should review food supply chain-related subjects to ensure funding for relevant courses. 

Timing: medium term

Responsibility to deliver: government and education bodies

7) Produce a workforce data strategy

• Set out a workforce data strategy in partnership with the Office for National Statistics and Department for Education’s Unit for Future Skills to improve available data on labour and skills supply.
• This should include commissioning real-time labour market information and improving existing datasets and mapping workforce trends within the sector to ensure a pipeline of skills. 

Timing: long term

Responsibility to deliver: government

8) Incentivise automation

Improve access to funding that incentivises the uptake of automation among businesses to encourage productivity gains, boost employment and achieve environmental outcomes.

Replacement of the Fruit and Vegetables Aid Scheme must open grant aid to individual producers, and an equivalent scheme needs to be introduced for the food and drink manufacturing sector.

Timing: long term

Responsibility to deliver: government

9) Advance automation knowledge

Implement a coordinated, cross-industry approach to knowledge-sharing and promote the adoption of automation which eliminates existing barriers and simplifies access to new technology. The FDSC should act as the initial forum.

Timing: long term

Responsibility to deliver: government and industry

10) Moonshot approach to innovation

There needs to be a moon-shot approach to innovation funding where collaboration between relevant stakeholders can identify gaps in existing technologies, provide new revenue streams, and support the wider adoption of automation, driven by the FDSC.

Timing: long term

Responsibility to deliver: government, research funding bodies and industry 

The government response to the review findings will follow later in 2023. Read the report in full here.