Supermarket giants should be hit with multimillion-pound fines if they fail to do their bit to help tackle UK’s obesity crisis by making their goods healthier, pressure group demands

•  Nesta argues that only new laws backed with penalties will help reverse obesity

Supermarkets should face multimillion pound fines if they fail to improve the health of their products to tackle obesity, according to an influential nudge unit.

The proposals come from Nesta, which has support from Asda and Sainsbury’s as well as the consumer champions at Which?

However, supermarket industry leaders insist that any new regulations should also apply to big brands and fast food chains.

Nesta argues that only new laws backed with penalties will help reverse obesity, which has doubled since the early 1990s, with three in five people now overweight or obese.

A new report from Nesta argues the 11 largest supermarket chains should be legally required to improve the health of their products.

It said that relatively small changes in recipes could reduce UK obesity levels by 23 per cent within three years – helping 4m people to slim down.

It argues that this could save the NHS and UK economy some £20 billion a year.

Nesta is calling for the Food Standards Agency (FSA) to be given new powers to oversee the targets and enforce penalties. Retailers would receive payments if they hit targets early.

The organisation said the rules would require stores to ensure the health profile of foods, such as ready meals, pizzas, breakfast cereals and snacks, match those of the best on the market.

It said: ‘Our modelling estimates that setting a health target for the 11 largest grocery retailers, at levels similar to those already achieved by today’s ‘best’ players, could reduce calorie purchases by around 80 kcal per person per day among the population with excess weight, and obesity prevalence by approximately 23 per cent.

‘This would translate to around four million fewer people living with obesity in the UK and around £20 billion in annual cost savings to society.’

Voluntary schemes to boost the health of popular foods have failed to deliver a meaningful improvement.

Two weeks ago, a report by the Office for Health Improvement and Disparities (OHID) showed that a voluntary programme of calorie reduction it inherited form Public Health England (PHE) failed to hit its target of reducing calories by 20 per cent by the end of 2024.

Nesta was set up by Labour in 1997 using National Lottery money as the National Endowment for Science, Technology and the Arts.

It then formed partnerships with David Cameron’s administration, specifically the Behavioural Insights Team, which became known as the government’s Nudge Unit and drove changes in policy and public behaviour.

Both Asda and Sainsbury’s have indicated their support for new laws and regulations to set mandatory standards to improve the health of food.

Nesta argues that the changes could be phased in before becoming mandatory by 2030 and it insists they would not increase prices.

It said: ‘An economic assessment of the policy proposal suggests it is unlikely to have a significant cost to businesses or consumers.’

The assessment was compiled by Daniel Gordon, who was senior director of markets at the CMA from 2014 until last year.

He said: ‘Some retailers are already operating very close to the target and are likely to be able to meet it with relatively little change needed.’

Director of the health team at Nesta, Hugo Harper, told The Grocer: ‘If we want to improve the nation’s health, we have to focus on our food system.

‘That’s not because we have less willpower than we did 25 years ago. What’s changed is what is sold and marketed to us – it’s just harder to be healthy. Supermarkets are not the enemy in this story.

‘If we incentivise retailers to work with us to make food healthier, then that’s a massive win for public health.’

The Which? Head of Food Policy, Sue Davies, said: ‘Our research has repeatedly found that people want supermarkets to do more to help them make healthier choices.

‘Nesta’s analysis shows mandatory food targets would incentivise retailers to make small but significant changes.’

The British Retail Consortium insisted that any new regulations would have to include big brands and fast food chains.

Its Director of Food & Sustainability, Andrew Opie, said: ‘Supermarkets remain ahead of the curve on sugar, salt and calorie reduction across their own-brand ranges, while significantly less work has been done by big brands and eating-out establishments.

‘But yet again we see a report focused on action by the supermarkets – ignoring the other major food players, as well as the consumers themselves.

‘Instead of this piecemeal approach to tackling obesity, we need wholesale change, and if necessary, the introduction of regulation to ensure that everyone is playing their part in improving the health of the economy.’