STOCKS | UK Ad Group Warns Food Ad Ban Expansion Could Hit £1 Billion in Media Spend

According to Sina Finance, the UK Advertising Association warned that the government’s plan to expand restrictions on unhealthy food advertising could affect about £1 billion in ad spending across broadcasting, publishing, and digital platforms, and hit the UK media industry. The association said the proposal would use an updated nutrient profiling model to redefine less healthy foods and determine whether related products can run TV ads before 9 p.m. or online ads at any time, with the aim of tackling childhood obesity. Current ad restrictions took effect in England in January 2026. A study commissioned by the association from Oxford Economics found that widening the definition of unhealthy food would place up to £1 billion of food and drink ad spending under new limits each year. Of that, £80 million to £100 million would be permanently lost as multinational brands move budgets out of the UK. The report said companies are currently focused on adapting to the January 2026 restrictions based on the existing definition and are not prepared for the proposed changes. It added that the main financial burden of compliance comes from legal, governance, and training costs. The UK Food and Drink Federation said another analysis found that restricted products could rise by 40% if the new definition is implemented. The federation said the food industry has already spent hundreds of millions of pounds reformulating products and that keeping the current rules would help companies reach mandatory reporting targets for healthy food sales faster. The association also said Premier Foods, Nomad Foods, Danone North Europe, KP Snacks, and Carlsberg Britvic have pledged to report healthy food sales data from next year ahead of the mandatory requirement. The advertising industry urged the government to drop the proposal and restore its earlier commitment to review the policy five years after the current rules take effect. The association said the revenue loss would severely hit commercial public service broadcasters, directly reducing program production spending and affecting independent production hubs. Chris Walker of the association said companies had only just adapted to the January 2026 rules and were now being pushed into a second wave of complex compliance procedures, creating red tape and policy instability. He called on the government to reconsider the decision and recognize its real economic impact.