The Government is considering delaying a proposed crackdown on sugary food advertising as food manufacturers warned they will have to raise prices and avoid investing in the UK.
Supermarkets have been told by government officials that ministers are considering postponing new rules which could come in as early as next year, The Telegraph reported.
The British Retail Consortium (BRC) has warned that shop prices will go up if firms are forced to reformulate ‘tens of thousands of products’ – all while consumers already face higher costs due to the war in the Middle East.
Manufacturers are fuming as they say they have invested millions in rejigging products to fit new rules in recent years – just for the goalposts to be moved once again by upcoming proposals.
Helen Dickinson, chief executive of the BRC, said the proposals would be ‘hugely complex and costly undertaking, adding to the policy and energy cost pressures facing the industry.’
Karen Betts, chief executive of the Food and Drink Federation (FDF), whose members include household names Nestle and Danone, said the Government must ‘urgently rethink’ this.
Mr Kipling is among the brands which have already reformulated their products to meet regulations – as many manufacturers could have to change their recipes again
‘Industry remains very open to working with the government on more impactful ways to help people follow healthier diets, but focusing on whether or not fruit purees should be added to natural yoghurt risks tying industry in regulatory knots and not seeing the wood for the trees.’
Restrictions on promotions, such as ‘3 for the price of 2’, of ‘less healthy’ food were introduced in England in October 2025. This required companies to spend millions to reformulate their factories and recipes.
Now the Government plans to update the definition of what these ‘less healthy’ foods are to align with the country’s dietary advice on sugary, fibre, salt and fat.
But manufacturers are unhappy as foods such as high fibre cereal, yoghurts and smoothies are now deemed unhealthy – as well as some new products that were just reformulated to be healthier.
Manufacturers invested £180m in 2024 into creating healthier products, the FDF estimates.
Dorito’s spent £13m in upgrading its Leicestershire factory so it would be able to reduce the salt and fat content in its crisps – but its new formulation won’t meet the new criteria.
And Premier Foods launched a new range of Mr Kipling cake slices with more than 40pc less sugar last year – these also couldn’t be advertised under the new framework.
Businesses also feel the regulations are ‘very narrow’ and akin to ‘setting targets companies simply cannot meet,’ Betts said.
Firms argue the proposals are unrealistic because only a small fraction of the population follow the national dietary advice currently.
Confusion around when these proposals will be introduced is also causing jitters among global food manufacturers when it comes to investing in the UK, the FDF says.
Betts added: ‘It makes it a very unattractive environment for investment in food and drink. The risk is we just stagnate and the dynamism in research and development moves to other countries.’
The Government has not yet confirmed when a 12-month implementation period will start – but businesses fear it could be as soon as next year.
‘Against the backdrop of heightened geopolitical uncertainty and inflation risks, government would be wise to push back implementing any changes for at least two years to mitigate at least some of the upward pressure on shop prices,’ the BRC’s Dickinson said.
This is understood to be one of a few policy changes Government officials have told the industry they are looking at, including reviewing plastic packaging taxes.
A Department of Health and Social Care spokesperson said: ‘As part of the 10-Year Health Plan, this government is committed to supporting parents to raise the healthiest generation of children ever.
‘The current system is based on a nutrient profiling model more than 20 years old, which does not reflect modern dietary advice, which is why we have consulted on updating it.
‘Since 2015, guidance has been clear that children should eat less free sugar and more fibre. The updated model reflects this and better balances beneficial nutrients against salt, sugar and saturated fat.’
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