Restricting promotions of food and drink high in fat, sugar or salt: business and regulatory impact assessment - partial

15. Summary And Recommendation

Costs and benefits of Options 1 - 4 outlined above are summarised at 15.1. Given the analysis above, and the summary below, we recommend Option 4(c). We consider this balances a comprehensive package of measures aimed at improving public health and their health impacts against the impacts on business. In addition and in line with Option 4(c) the consultation;

• notes there are different ways in which we could target meals deals including opportunities to promote healthier meal deal options. On that basis the consultation seeks views from stakeholders on credible options for targeting less healthy meal deals.
• explores the practical aspects of restricting TPRs, and any potential unintended consequences

The final BRIA will be further informed by the outcome of the consultation.

15.1 Summary costs and benefits table

Option: 1

Description: Do nothing

Benefit: Sectors – retail, out of home and manufacturers – who would be directly affected the proposals outlined within option 2 – 4 would not be subject to restrictions and associated costs.

Local government would save on enforcement costs

Cost: To take no actions we assume no impact on current population weight trajectories which is not consistent with our vision for a Scotland where everyone eats well and has a healthy weight.

Option: 2

Description: Price (volume, e.g. multi-buy) and location restrictions for discretionary foods and ice cream and dairy desserts, no exemptions

Benefit: Discretionary foods account for around 20% of calories and fat in our diet and more than half of free sugars.

No business exemptions will maximise the impact of the policy

Cost: Limited categories of food within scope of the policy would minimise the potential to improve public health.

Location restriction may pose implementation challenges for smaller stores.

Option: 3

Description: Price (volume, e.g. multi-buy excluding meal deals and TPRs) and location promotion restrictions for discretionary foods and ice cream and dairy desserts and additional foods

Benefit: Consistent with the targeted food categories as set out in the UK Government regulations for England. These are food categories of most concern to childhood obesity and are in line with our aim to halve childhood obesity by 2030.

Cost: Food purchases have consistently been greater on TPRs than for other price promotion types. To exclude TPRs from the scope of the policy would limit the impact of the policy.

Option: 3a

Description: No business Exemptions

Benefit: No exemptions will maximise the impact of the policy

Cost: Divergence from the approach to business exemptions in England and proposed in Wales with increase cost for business.

Option: 3b

Description: Exemption for micro and small business from price and location restrictions

Benefit: Ensures that medium and large business where 85% of spend occurs would be within scope of restrictions.

An aligned approach to business exemptions across England , Scotland and Wales would reduce regulatory burden on business.

Cost: Minimise the impact of the policy

Potential for business exemptions to exacerbate health inequalities amongst some population groups who may be more reliant on smaller outlets particularly in out of home outlets where a greater proportion of sales comes from smaller businesses.

A full EQIA will be carried out to enable analysis of potential impacts, and options to mitigate these.

Option: 3c

Description: Exemption for micro and small business from location restrictions

Benefit: Exemption from location restrictions for smaller stores will mitigate implementation challenges.

Fewer exemptions will help maximise the impact of the policy.

Partial alignment with exemptions in England and proposed in Wales will help reduce regulatory burden.

Cost: The regulatory burden of divergence from the approach across the UK will have costs for business.

Exempting micro and small business from price restrictions will minimise the impact of the policy.

Option: 4

Description: Price (volume, e.g. multi-buy excluding meal deals and TPRs) and location promotion restrictions for discretionary foods and ice cream and dairy desserts and additional foods

Benefit: More extensive price promotions than the UK Government regulation for England.

A more extensive package of measures will maximise the impact of the policy.

Economic modelling suggests that restricting short term reductions in the price of food and drink products in addition to multibuys could enhance the positive impact of the policy on dietary health.

Cost: Divergence from the UK Government increases the regulatory burden and associated cost to business.

Potential implementation challenges around TPRs and meal deals

Option: 4a

Description: No business Exemptions

Benefit: No exemptions will maximise the impact of the policy

Cost: Divergence from the approach to business exemptions in England and proposed in Wales will have associated cost for business.

Location restriction may pose implementation challenges for micro and small business.

Option: 4b

Description: Exemption for micro and small business from price and location restrictions

Benefit: Ensures that medium and large business where 85% of spend occurs would be within scope of restrictions.

An aligned approach to business exemptions across England , Scotland and Wales would reduce regulatory burden on business.

Inclusion of TPRs within scope will have implications for businesses, and likely more so for smaller businesses. Exemptions will help to mitigate these implications.

Cost: Minimise the impact of the policy

Potential for business exemptions to exacerbate health inequalities amongst some population groups who may be more reliant on smaller outlets particularly in out of home outlets where a greater proportion of sales comes from smaller businesses.

A full EQIA will be carried out to enable analysis of potential impacts, and options to mitigate these.

Exempting micro and small business from price restrictions will minimise the impact of the policy.

Option: 4c

Description: Exemption for micro and small business from location restrictions

Benefit: Exemption from location restrictions for smaller stores will mitigate implementation challenges.

Partial alignment with exemptions in England and proposed in Wales will help reduce regulatory burden.

Cost: Exemption from location restrictions for micro and small business will not help to mitigate the implications of TPRs and meal deals being within scope.