£400 MILLION of potential new business for the British food industry was announced today by Prime Minister David Cameron and Environment Secretary Elizabeth Truss, as part of the government’s long-term economic plan to back British businesses.
The Prime Minister announced that from 2017, all of central government will commit to buying fresh, locally sourced, seasonal food, so that all food that can be bought locally will be bought locally. This will be done through a new, simplified food and drink buying standard, ‘The Plan for Public Procurement’, which was launched today to benefit thousands of British farmers, small businesses, rural economies and the British public.
The public sector in England spends £1.2 billion every year on food and drink. Up to £600 million of that is spent on imported produce, £400 million of which could be sourced from within the UK. The commitment from central government to use this new buying standard means that just over half of the £400 million will be up for grabs by British farmers. In addition, the wider public sector will be encouraged and supported in using the new framework with the expectation that all schools and hospitals will, in future, serve more locally reared meats and freshly picked fruit and vegetables.
Prime Minister David Cameron said: "Our long-term economic plan is all about backing the do-ers and the hard-workers – and no one does more or works as hard in Britain today than our farmers. By opening up these contracts, we can help them create more jobs, invest in their businesses and make sure people in our country have a healthier lifestyle.
It’s a triple win – and will mean a brighter future for our country."
Environment Secretary Elizabeth Truss said: "This move will mean that food served in canteens across the public sector can be more local, seasonal and tastier.
It will help drive growth in Britain’s first class food and drink industry and benefit the environment through reduced waste, higher take-up of meals and less unappetising food left on plates.
This is a huge boost to British farmers and producers and for students, patients and employees who want to enjoy fantastic food."
Public sector buyers will now judge potential suppliers against five key criteria:
- how food is produced and whether the food was produced locally
- the health and nutritional content of food purchased
- the resource efficiency of producing the food, such as water and energy use and waste production
- how far the food bought meets government’s socio-economic priorities such as involvement of SMEs
- quality of service and value for money
- British farmers are expected to benefit significantly from the plan because British farmers are best placed to meet these tough new standards.
In addition to backing local and sustainable food, the new standards prioritise procurement from smaller producers, thereby helping SMEs gain access to the lucrative public sector market.
To support these small businesses further, government will also put in place a new buying process from September, centred around an online portal. Companies which register on this portal and meet the requirements of the plan’s scorecard will automatically be alerted when any eligible contracts come up for tender. They will then be able to apply in just a few clicks.