Andy Burnham is to meet EU leaders (Image: Getty)
Thousands of jobs could be put at risk by Andy Burnham’s food and drink deal with the EU. Industry leaders are pleading with the Prime Minister to cut costs for British manufacturers, with a warning that high UK energy bills and taxes make it impossible to compete with EU firms on a level playing field.
Mr Burnham is set to sign the deal, known as the Sanitary and Phytosanitary Agreement, at Friday’s historic Brussels summit. Food and drink manufacturing is the UK’s largest manufacturing sector, contributing £41.6billion to the economy and supporting 484,800 jobs. The Food and Drink Federation (FDA), which represents household names from Birds Eye to Weetabix Ltd, is backing the trade plan but urged the Government to support UK firms.
FDA chief executive Karen Betts said: “It’s important to note that trade opportunities go both ways. It’s currently cheaper to make food and drink in Europe than it is here, given the UK’s high energy and regulatory costs.
“The Government must act quickly to make the UK a more competitive place to run a food business, or we risk losing our strong domestic manufacturing base to Europe.”
Average electricity price paid by a medium-sized business in the UK was 25.85p per kWh in 2025, while in France it was 10.74p and in Spain it was 10.45, according to Government figures.
A study by the CBI found costs for food manufacturers rose 40% between 2020 and 2026, thanks to rising energy costs, higher prices for ingredients, increased taxation and a growing volume of regulatory requirements. In addition, government policies cost the industry £1.5billion, including higher Employer National Insurance Contributions and new taxes on packaging.
The FDA is also warning that firms must be given time to adapt to new EU laws before they come into force. FDA research has found more than 400 UK regulations will need to be brought into line with Brussels laws as part of the planned agreement.
Get the latest politics news straight to your phone Join us on WhatsApp
Our community members are treated to special offers, promotions, and adverts from us and our partners. You can check out at any time. Read our Privacy Policy
Ms Betts said: “Brexit has had a major impact on food and drink manufacturers, with friction at the border driving extra costs and making it harder to do business with our largest trading partner. Making it easier to trade in food and drink is a welcome step for large and small businesses across our sector.
“However, aligning UK food laws and standards with the EU is a significant task. All UK food and drink manufacturers will need to comply with EU law whether or not they trade with Europe, and those laws have changed a good deal since Brexit.
“Businesses need adequate time to make a range of changes to their products and packaging, and they will need prompt and accurate guidance from government to do so. We also need to understand how the government will now influence the future shape of EU food law, to ensure the interests of food businesses in the UK are taken into account.”
The Government has already warned the food and drink industry to prepare to comply with EU rules covering everything from the amount of fruit contained in jam to the types of olive oil included in olive oil blends.
Eggs will need to be marked with a code showing where they were produced, while ultra-violet treatment will no longer be allowed in the production of mineral waters.
A Government spokesperson said: “We recognise that businesses are facing real pressures from global uncertainty and rising costs so from April 2027, the British Industrial Competitiveness Scheme will support over 10,000 eligible businesses and cut their electricity bills by up to 25%.
“Our proposed deal with the EU will add billions to the economy, and end the costly paperwork taxes which have pushed up food and energy costs for businesses and consumers alike.”
Andy Burnham’s Brexit Betrayal Set to Put Thousands of Jobs at Risk
Andy Burnham is facing growing criticism over his proposed Brexit policy, amid warnings that thousands of British jobs could be at risk. His plans to strengthen economic ties with the European Union have raised serious concerns among manufacturers, particularly those operating in the food and drink industry. Critics argue that while the government promises to improve trade relations with Europe, British businesses could face additional costs, increased competition and further economic uncertainty.
At the centre of the controversy is a proposed agreement between the United Kingdom and the European Union covering sanitary and phytosanitary regulations. The arrangement aims to reduce border checks, simplify paperwork and make it easier for British businesses to export agricultural products, food and drink to European markets.
However, manufacturers fear that closer alignment with European regulations could create new financial and administrative burdens. More than 400 British regulations could potentially require changes to bring them into line with EU standards. Businesses may have to adjust production methods, packaging, ingredients and product labelling to comply with the new requirements.
The food and drink industry is particularly vulnerable because it represents one of Britain’s largest manufacturing sectors. It contributes approximately £41.6 billion to the UK economy and supports around 484,800 jobs. Any reduction in competitiveness could have serious consequences for factories, suppliers and workers across the country.
One of the biggest concerns is the rising cost of electricity. British manufacturers have repeatedly complained that energy prices are significantly higher than those faced by competitors in countries such as France and Spain. This makes it more expensive to operate factories, maintain production lines and manufacture goods for international markets.
Rising taxation has created further difficulties. Businesses are already dealing with increased employment costs, expensive raw materials and additional regulatory requirements. Some industry representatives fear that these pressures could force manufacturers to reduce investment, cut their workforce or relocate production overseas.
For smaller businesses, the situation is particularly challenging. Unlike large multinational corporations, smaller manufacturers often lack the financial resources needed to absorb sudden increases in operating costs. If the government introduces major regulatory changes without sufficient support, some companies could struggle to remain competitive.
Nevertheless, Burnham’s government argues that closer cooperation with the European Union could bring substantial economic benefits. Since Brexit, British exporters have faced additional paperwork and border procedures that have made trading with European countries more complicated. Removing unnecessary barriers could help businesses increase exports, attract investment and strengthen supply chains.
The government must therefore balance two competing priorities: improving access to European markets while protecting British manufacturers from excessive costs. Simply aligning regulations will not guarantee economic success if domestic businesses continue to face significantly higher production expenses than their European competitors.
The political consequences could also be significant. Brexit remains one of the most divisive issues in British politics. Supporters of leaving the European Union believed that Britain would gain greater control over its laws, borders and trade policies. Consequently, any attempt to move closer to Brussels risks accusations that politicians are reversing the result of the referendum.
Burnham must demonstrate that his approach delivers tangible benefits rather than simply creating new obligations for British businesses. His government will need to explain how companies will receive financial assistance, how regulatory changes will be implemented and what safeguards will protect domestic employment.
Ultimately, the future of thousands of British jobs could depend on how effectively the government manages this transition. Closer relations with Europe may create new commercial opportunities, but those benefits must be shared by British manufacturers and workers.
The real test for Andy Burnham will be whether his Brexit strategy can strengthen the British economy without undermining the industries and communities that depend on it. If the government fails to address rising costs and competitiveness, its promises of economic growth could be overshadowed by factory closures, reduced investment and job losses.