Government proposals to widen advertising restrictions on less healthy foods could put nearly half of the £2.4bn UK’s annual food and drink marketing spend at risk as ministers battle to tackle the weighty yet controversial issue of childhood obesity.
That is the stark warning to emerge from a report by Oxford Economics for the Advertising Association, which claims the proposed update to the nutrient profiling model could threaten up to £1bn of spend nad have a devastating affect on broadcasters, publishers and digital platforms.
The AA has also claimed that commercial public service broadcasters face significant revenue losses and reduced programming budgets due to potential permanent loss of up to £100m in redirected brand advertising.
Meanwhile, the Food & Drink Federation estimates the updated regulations could raise the number of restricted products by 40%, while the industry has also argued that insufficient time has passed to assess January 2026 rules.
According to a report in the Financial Times, the AA has told ministers that expanding the definition of less healthy food to include more products such as some cereals, juices and yoghurts could undermine support for the UK media industry.
Applying the new NPM, first proposed in March, would bring more products in line with the latest dietary recommendations, mainly those that are higher in so-called “free sugars”, added to foods by manufacturers or naturally present in honey, syrups, and unsweetened fruit juices.
The change would mean that the advertising and marketing of a host of desserts, yoghurts, breakfast cereals and cereal bars would be restricted. The Government claims these products are often marketed as being healthier to children and that parents may mistakenly think are healthier choices, despite their free sugar content.
Existing rules which ban advertising for products high in fat, salt and sugar (HFSS) before 9pm – and at any time online – took effect in England in January 2026 under. However, most organisations representing advertisers, broadcasters and online platforms had signed a voluntary and unilateral commitment to start the restrictions October last year.
Even so, the industry says businesses are still adjusting to those restrictions and are unprepared for another change.
Advertisers could keep some spending in the domestic market by reformulating products, moving TV campaigns past the watershed, or reallocating budgets to other channels or compliant products. But the AA insists revenue losses would reducing programming budgets and affecting independent production hubs.
The warning comes just days after Channel 4 said it will have to cut more than a quarter of its workforce, or 340 jobs, amid a difficult TV advertising market. Meanwhile, ITV has warned that traditional linear TV advertising continues to face downward pressure and cyclical caution from brands.
The AA is urging the Government to drop the proposal and return to its earlier commitment to review the impact of the current policy within five years of implementation.
AA director of public affairs Chris Walker said: “We urge the Government to reconsider this policy decision and recognise its real economic impact.”
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