Six key policy trends defining the 2026-2027 outlook, and how wholesalers should be preparing
The policy landscape for 2026- 2027 is set to reshape operating models across UK food and drink wholesale. From environmental levies to employment reform and fiscal pressure, wholesalers face a complex mix of cost, compliance and opportunity. Strategic preparation now will determine who can gain a competitive advantage.
Deposit Return Scheme
The UK’s Deposit Return Scheme (DRS) will move from planning into operational reality across England, Wales, Scotland and Northern Ireland on 1 October 2027. For wholesalers, DRS introduces reverse logistics challenges, new reporting obligations and cashflow considerations around deposit handling.
Space for storage of returned containers, reconciliation systems and fraud-prevention processes will be critical. Wholesalers supplying hospitality must also clarify responsibility splits with customers to avoid disputes (check out page 20 for lessons from international deposit return schemes).
Extended Producer Responsibility
Extended Producer Responsibility for packaging will materially affect supply chain costs through higher compliance fees based on packaging recyclability. While producers are primarily liable, wholesalers will still feel the effects. The need for detailed packaging data and reporting will intensify, increasing administrative burden. Proactive engagement with suppliers to prioritise lighter, recyclable formats could soften future charges. Wholesalers that build transparent sustainability credentials may also strengthen relationships with retail and foodservice customers seeking lower environmental footprints.
Corporation taxes
With corporation tax now at 25% for larger businesses, the 2026-2027 outlook centres on fiscal tightening rather than reduction. Wholesale margins remain thin, and higher tax liabilities reduces money for fleet investment, automation and digital software.
Strategic tax planning, particularly around warehousing automation, IT systems and energy efficiency, will be essential to preserve cashflow and maintain competitiveness amid continually increasing operating costs.
Employment Rights Act
Proposed reforms under the Employment Rights Act framework aim to strengthen worker protections, including day-one rights, flexible working and increased enforcement.
For wholesalers reliant on large warehouse and driver workforces, this may increase administrative complexity, and zero-hours arrangements could face tighter regulation. Businesses should review contracts, scheduling systems and HR compliance processes now.
Fuel costs
Fuel remains one of the most volatile cost lines for wholesalers with delivery-vehicle fleets. While oil prices have stabilised compared with peak crisis levels, geopolitical risks and decarbonisation policies could trigger more problems.
The transition towards electric or alternative-fuel vehicles is accelerating, but requires high upfront capital and depot charging infrastructure. Route optimisation software investment can reduce exposure from this.
UK government’s Food Strategy
The evolving UK Food Strategy places sustainability, public health and domestic food security at its core. For wholesalers, implications include reformulation pressures, and potential HFSS expansion.
There may also be procurement shifts favouring British produce and carbon reporting requirements. While compliance adds complexity, wholesalers can leverage the strategy by aligning ranges with healthier and locally sourced products.
For foodservice wholesalers, early adaptation could unlock new public sector and contract catering opportunities.
