{"id":9652,"date":"2026-10-13T13:08:39","date_gmt":"2026-10-13T12:08:39","guid":{"rendered":"https:\/\/newtonimpact.com\/?post_type=content_library&p=9652"},"modified":"2026-10-13T13:08:40","modified_gmt":"2026-10-13T12:08:40","slug":"pre-budget-submission-recommends-tax-changes-to-boost-food-surplus-recovery-by-hundreds-of-millions-of-meals-a-year","status":"publish","type":"content_library","link":"https:\/\/newtonimpact.com\/en-au\/content-library\/blog\/pre-budget-submission-recommends-tax-changes-to-boost-food-surplus-recovery-by-hundreds-of-millions-of-meals-a-year\/","title":{"rendered":"Pre-Budget submission recommends tax changes to boost food surplus recovery by hundreds of millions of meals a year\u00a0\u00a0"},"content":{"rendered":"\n
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\n Take Me Back<\/a>\n\n

Pre-Budget submission recommends tax changes to boost food surplus recovery by hundreds of millions of meals a year\u00a0\u00a0<\/h1>\n

By Matthew Knox <\/p>\n\n

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5 min<\/p>\n <\/span>\n \n

13th October 2026<\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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Recommendations for a tax policy incentivising manufacturers to rescue as many as 200 million meals a year have been shared with the government ahead of the UK Autumn Budget. The submission, based on The Waste Equation report, aims to increase the amount of food making it to people in need rather than being disposed of due to cost.<\/h2>\n <\/hgroup>\n \n
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Enough<\/span> food<\/span> is produced<\/span> for <\/span>everyone, <\/span>yet <\/span>globally <\/span>around a third of it<\/span> is wasted <\/span>while<\/span> millions of <\/span>people<\/span> struggl<\/span>e<\/span> to feed their families<\/span>*<\/span>. M<\/span>any countries, including<\/span> France and the US<\/span>,<\/span> provide tax incentives to encourage <\/span>businesses<\/span> to<\/span> redistribut<\/span>e their<\/span> surplus food<\/span> to<\/span> those who need it<\/span>.<\/span> T<\/span>he UK is an outlier in advanced and emerging economies in not <\/span>doing so<\/span>.\u00a0<\/span><\/span><\/p>\n

Harvard Law School, which tracks best practice around the world, recommends<\/span> a change<\/span>, as does <\/span>The Food Redistribution Partnership UK<\/span>. <\/span>This new group, made up of<\/span> the seven main redistribution charities and <\/span>backed<\/span> by anti-poverty charity <\/span>Trussell, <\/span>is <\/span>publicly <\/span>calling for <\/span>a tax policy overcom<\/span>ing<\/span> three financial considerations <\/span>currently <\/span>deterring businesses from consistently saving food from waste<\/span>:<\/span><\/p>\n

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  1. Not only does the UK tax system not offer an incentive, but it disincentivises redistribution as public subsidies reward sending surplus food to <\/span>anaerobic digestion<\/span><\/b> \u2013 even if it is safe for people to eat.<\/span>\u00a0<\/span><\/li>\n
  2. Manufacturers send perfectly edible food to be made into <\/span>animal feed<\/span><\/b> to claw back margin when items fail to reach, for instance, retailer specifications for colour or size.\u00a0<\/span>\u00a0<\/span><\/li>\n
  3. People, packaging and process resource is required to spot, sort and store food <\/span>ready for charities<\/span><\/b> to collect.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Matt Knox, <\/span>D<\/span>irector at Newton<\/span><\/span><\/strong>, said: <\/span>\u201cNobody working in a factory wants to see food being wasted, but when margins are tight, it can be too costly to <\/span>forfeit<\/span> financial incentives and set up new ways of working. <\/span><\/span><\/p>\n

    Armed with new data and deep understanding of supply chain processes, it is time to address this issue, helping shape a new approach to food surplus for the country \u2013 where businesses can make choices which are right for people, the planet and their own financial future.”<\/span><\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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    “Having been part of the collective finalising the details of the recommendations, I can tell you that redistribution charities are ready and raring to share the extra meals the changes would provide for people in need.”<\/p>\n \n Matt Knox, Director <\/span>\n Newton <\/cite>\n <\/blockquote>\n <\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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    From costly to crucial <\/h2>\n <\/hgroup>\n \n
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    Working alongside our clients to understand every detail of their processes and costs, Newton sees first-hand changes that would make a meaningful difference across whole industries. We recently applied our forensic approach and detailed understanding of the end-to-end supply chain to the food surplus challenge.<\/span>\u00a0<\/span><\/p>\n

    In collaboration with Felix and IGD (Institute of Grocery Distribution)’s Alliance Food Sourcing, Newton has developed The Waste Equation<\/strong> report. It shows where in manufacturing there is the greatest potential to save more surplus and finds that even after reducing waste as much as possible, 89k tonnes, equivalent to 212 million extra meals, could be sent to community organisations each year.<\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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    The research within this report is now being used to support a budget representation submitted by the Food Redistribution Partnership UK.<\/h2>\n <\/hgroup>\n \n
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    It makes the case for how to adapt tax incentives, making redistribution the \u201cpreferable economic choice\u201d, recommending:\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

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    1. The total cost of donated surplus food becomes tax deductible<\/span>\u00a0<\/span><\/li>\n
    2. A tax credit, initially for manufacturers, is introduced to cover the costs incurred in making surplus food available to charities<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

      Ali Gourley is Head of Communications and External Affairs at Felix<\/span><\/b> which helped shape the report and is also part of the partnership behind the tax recommendations.\u00a0<\/span>\u00a0<\/span><\/p>\n

      He said: \u201cThe Waste Equation has paved the way for practical policy conversations. The detailed data it contains underpins the partnership\u2019s two tax policy recommendations, enabling us to show the impact of providing tax incentives for redistributing food rather than sending it to anaerobic digestion or animal feed.”<\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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      “I know business leaders hate wasting food, especially when demand for it is so high. If you are reading this and support the idea of a small change in the tax code to reward businesses for redistributing food, you can help raise awareness by writing to your MP.”<\/p>\n \n Ali Gourley, Head of Communications and External Affairs <\/span>\n Felix <\/cite>\n <\/blockquote>\n <\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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      More to come<\/h2>\n <\/hgroup>\n \n
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      Focused on one part of the food and drink industry \u2013 manufacturing \u2013 The Waste Equation report provides \u201ca level of detail that is not yet available for other parts of the supply chain\u201d.\u00a0<\/span>\u00a0<\/span><\/p>\n

      As a result, the new tax credit recommendation is seen as a blueprint to be tested in manufacturing and then rolled out after piloting to unlock opportunities that exist in farms, restaurants and retailers.<\/span>\u00a0<\/span><\/p>\n

      Charlotte Hill OBE, CEO of Felix <\/span><\/b>said: \u201cIf the whole food and drink industry supports the tax policy and jumps into action to adopt it, we will be able to change millions of lives each year and help build stronger and more resilient communities. Thank you to everyone tirelessly working towards this future.\u201d<\/span><\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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      The Waste Equation<\/h2>\n <\/hgroup>\n\n
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      Recent data-led research, The Waste Equation, reveals how the food and drink industry can<\/span>\u00a0<\/span>reduce<\/span><\/i> food waste,\u00a0<\/span>recover<\/span><\/i> more surplus to people who need it and <\/span>use savings to <\/span>reinvest<\/span><\/i> in creating more good food to donate.<\/span><\/p>\n

      \n \n\n Read the full report <\/span>\n \n \n <\/svg>\n
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      Resources<\/h2>\n <\/hgroup>\n \n
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