Michael McLaughlin on employment changes and the food and drink industry
Scotland’s food and drink (F&D) manufacturing sector, the country’s third largest industry by value, is an unsung economic powerhouse. While the technology and renewable energy sectors continue to see significant investment, figures reported by the Scottish Government (November 2025) estimated the turnover value of Scotland’s 17,000 food and drink businesses as a record 19 billion. F&D manufacturing achieved growth of 20.2 per cent in 2025 and contributed over 5 billion to the economy.
This growth underlines the sector’s importance to Scotland’s export profile, and employment across both urban centres and rural communities. Significantly, growth has been achieved despite rising costs pressures, lack of investment in skills and knowledge and as employers grapple with an increasingly complex and demanding employment law landscape in the shape of the Employment Rights Act 2025 (ERA 2025).
Rising energy costs, non‑domestic rates, volatile consumer demand and over‑production continue to challenge margins. Premium drinks producers, particularly whisky distillers, also face sustained pressure from tariffs and international trade friction. These challenges are forcing many businesses to reassess staffing levels, work patterns and long‑term workforce models.
Yet they must be careful to ensure any plans fall within the raft of new ERA 2025 employment laws, intended to strengthen individual employee and...
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