FSA set to be appointed healthy food target regulator

Source: Tesco

Supermarkets will be set mandatory targets over the sale of healthy food and drink, under Labour’s 10-year health plan

The Food Standards Agency looks set to be handed the role as watchdog of the government’s mandatory healthy food targets scheme, in a move that could have “seismic” repercussions for how health policy is regulated.

Ministers from the Department of Health & Social Care have asked the FSA to continue to support with the ongoing development of the healthy food standard, with a view to potentially acting as regulator, subject to consultation, The Grocer has learned.

FSA board members are set to discuss how it would carry out the role, as well as the implications on the structure, funding and remit of the body at its upcoming meeting on 26 March, briefing documents reveal. 

The proposals remain subject to consultation and ministerial sign-off. However, it would represent a major shift in the FSA’s remit, putting the body back at the heart of overseeing health policy.

Under his 10-year health plan, health secretary Wes Streeting wants to bring mandatory health food sales targets in before the end of the current Parliament. Were the FSA to be given a key oversight role, it would follow recommendations made by influential nudge body Nesta in its proposed model for the new health targets in February 2025.

Industry is likely to be split over the proposals, which some fear could open the door to a potentially much more draconian regulatory system, amid a wider row over how the mandatory targets should be applied. 

However health campaigners argue that the FSA acting as independent regulator adds credibility to the scheme, and makes the policy less prone to lobbying from supermarkets and big food manufacturers.

“If consultation determines that the Food Standards Agency is best placed to oversee this, it would be well equipped to do so – with the independence, experience and credibility needed to deliver a system that is trusted by consumers, NGOs and industry,” said Katharine Jenner, executive director of the Obesity Health Alliance.

“The focus now must be on delivering this quickly and effectively within this Parliament and so building on existing infrastructure and expertise is the most logical way forward,” she said.

FSA resources already under strain 

However, there remain significant questions over whether the FSA had the resources to cope with the additional strain of an expanded remit.

“Somebody has to be in charge of regulating this stuff. But the reality of the situation is that the FSA has neither the resources or the funding to do any of this,” a senior industry source told The Grocer.

“We are taking about the need to completely repurpose the FSA’s remit back to public health policy and obesity yet so far there are no details of any funding.”

The source referred to the huge ongoing row over proposed changes to the nutrient profiling model, as well as the “huge operational challenge” from the post-Brexit SPS agreement, which “will require massive FSA input in time and staffing”, as evidence that the body is already under strain.

Read more: How will healthy sales targets and fines be applied?

In the briefing document, the FSA itself acknowledged that any additional role as regulator would require a significant shake-up of its internal staff structure, including the recruitment of new data, tech and digital specialists, as well as potentially new digital systems.

The Treasury is also yet to detail how much the scheme is projected to cost, or funding, the briefing notes add.

Retailers have also previously expressed concerns over the FSA as potential regulator, instead arguing that the remit for health policy should remain with the DHSC.

“Meeting healthy food standards is a key area of compliance for our members and any regulator will need the experience and resources to match this challenge,” said Andrea Martinez-Inchausti, BRC assistant director of food.

“If such standards are to be meaningful, then it will require the regulator to be able to ensure all qualifying businesses are registered, conduct spot checks, and provide support and advice to companies to meet their obligations. This must be matched by clear guidance on the standards.”

The FSA told The Grocer that decisions on the appointment of a regulator were yet to be made. It expected the DHSC to consult on any proposals.

The Grocer has contacted DHSC for comment.