The UK government’s proposed expansion of junk food advertising restrictions has drawn criticism from the country’s leading advertising trade body, which warns the changes could have a significant economic impact. Stephen Woodford, CEO of the Advertising Association, expressed concerns that broadening the criteria used to classify foods as unhealthy would cost British jobs and drive investment away from the sector.

Woodford’s comments come just days ahead of Chancellor John Healey’s upcoming Budget announcement, where Labour is expected to outline measures addressing the cost of living crisis and plans to stimulate economic growth. The Advertising Association represents a wide range of major companies, including Sky, Google, and Spotify.

At the center of the dispute is the UK Nutrient Profiling Model (NPM), a scoring system that determines whether foods meet health standards for advertising purposes. Initially, the government had planned to use a version developed by the Food Standards Agency in 2004-2005, which balances high sugar, fat, and salt content against protein and fiber levels. However, shortly after new advertising controls came into effect in January, the government signaled its intention to adopt updated guidance from 2018, which eliminates this balancing approach and recategorizes many additional products—including bran flakes, yogurts, and fruit juices—as unhealthy.

According to research by Oxford Economics, these revisions could reduce advertising spending by an additional £300 million to £400 million, potentially bringing the total impact of the restrictions to between £750 million and £1 billion. Woodford criticized the Department of Health and Social Care (DHSC) for what he described as an attempt to “sneak out” significant regulatory changes without proper consultation or notice. He emphasized that businesses had been promised a five-year period to assess the rules’ effects before any review would take place.

Concerns have also been raised about the exclusion of the Department for Digital, Culture, Media and Sport (DCMS) from the latest consultation process, raising questions about whether the implications for advertisers were fully considered. Previously, DHSC and DCMS had collaborated on these rules.

Woodford underscored the contradiction between the government’s stated goal of fostering economic growth and the implementation of measures that impose additional burdens on the advertising industry without an impact assessment. He urged for regulatory stability to enable businesses to plan with confidence.

In response, the DHSC reaffirmed its view that the junk food advertising restrictions are necessary to combat childhood obesity and support parents in promoting healthier diets. The department noted that the original guidelines underpinning the previous model are over two decades old and do not reflect current dietary advice. A spokesperson said the government is reviewing consultation feedback and will continue to follow evidence-based approaches to tackle rising obesity rates among children.