Local Food Procurement Could Unlock £1bn Farm Boost

British farmers could receive a yearly boost of nearly £1bn (US$1.3bn), if half of all public sector food procurement was sourced locally or through higher environmental standard (HES) methods, according to new research from the Campaign to Protect Rural England (CPRE).

The report outlines how achieving this target could strengthen rural economies, improve food security and create more resilient local supply chains.

It also provides a roadmap for the UK government to support the delivery of its 50% sourcing commitment.

The economic case for local procurement

The research highlights that sourcing food locally can deliver significant economic benefits, particularly in areas where economic activity is constrained. Without local procurement requirements, large-scale catering companies and wholesalers may prioritise national or international suppliers, reducing opportunities for smaller producers and local businesses.

Evidence cited in the report demonstrates the wider economic impact of keeping food spending within local supply chains. A 2011 study by the New Economics Foundation found that every £1 (US$1.34) spent on local ingredients for school meals in Plymouth and Nottingham generated an additional £0.85 to £1.19  (US$1.14 to US$1.6) in local economic activity.

More recently, a 2026 study by Sustain and Aberdeen City Council found that each £1 (US$1.34) spent on locally sourced food generated £1.66 (US$2.23) in Scotland. With stronger local processing infrastructure, this figure could have increased to £1.96 (US$2.63).

Expanding local food trade could therefore help retain more value within communities while creating new opportunities for farmers, processors and suppliers.

Public sector food as a driver of change

Public sector food procurement plays a key role in shaping the UK’s approach to economic growth, food security and environmental sustainability. Around £5bn (US$6.7bn) is spent annually on food across the public sector, influencing demand from farmers, processors and catering providers.

CPRE argues that better use of this spending could help align procurement with wider government objectives. This includes supporting more sustainable farming practices, strengthening domestic supply chains and improving resilience across the food system.

By using public sector purchasing power strategically, the government could help create more reliable markets for British producers while supporting environmental goals.

Recommendations for government action

To achieve the 50% sourcing commitment, the report recommends that the UK government:

• Establish the 50% target in policy with a clear delivery timetable
• Strengthen and mandate the Government Buying Standards for Food (GBSF)
• Prioritise higher environmental standard (HES) methods while supporting local supply chains
• Align procurement practices with farming, land-use and environmental policies

Graeme Willis, CPRE Agriculture Lead and Author of the report, said the current procurement culture has affected hospital menus and school meals across the country for too long.

“The Food Strategy Action Plan is Burnham’s opportunity to prove he means business when it comes to British farming,” he says. 

“Investing in local producers to supply better quality food doesn’t have to cost more money, but will help secure a better future for British farmers, rural communities and our national food security.”

The report argues that examples from across the UK and beyond demonstrate that local procurement can be delivered effectively, offering a route towards a more secure, sustainable and resilient food system.