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The Scottish government has dropped plans for the most draconian crackdown yet on HFSS promotions, in a move welcomed by retail bosses and suppliers.

Holyrood has rowed back on plans for a ban on all promotions of HFSS products, instead announcing it would mirror the promotions ban brought in under the last Westminster government.

The proposals had faced huge opposition from food companies in Scotland, which warned it would deprive them of a basic commercial right to promote their products and damage the Scottish economy.

Under watered-down plans announced today, which will be put before the Scottish Parliament in the autumn, the clampdown will focus on food categories that are significant contributors of calories, fat and sugar to the Scottish diet. Restrictions will be imposed on the promotion of pre-packed HFSS food and drink products.

Like England and Wales, it will now restrict multibuy offers including bogofs and free refills of soft drinks with added sugar. It will also restrict the placement of HFSS food and drink products at key selling locations such as store entrances, checkouts and aisle ends.

The legislation will apply to businesses with 50 and more employees, both in-store and online.

The Scottish government said it expects the ban to come into force by the end of next year.

Scottish Retail Consortium deputy head Ewan MacDonald-Russell said: “We recognise regulatory interventions above and beyond voluntary initiatives are necessary, and indeed when done well, desirable.

“The Scottish Retail Consortium has been closely consulted on the proposed measures to restrict the promotion and marketing of high fat, salt and sugar products.

”That process has been taken forward in the spirit of collaboration as outlined in the New Deal for Business with a genuine intent to balance the health and economic impacts appropriately. The decision to focus on restricting promotions for which there is strong evidence are problematic, and to do so in a manner which supports the wider regulatory framework across the UK, is very welcome.

“This announcement is a sensible compromise, balancing the need for a public health intervention with the economic impact. There remain enormous challenges from the impact of diet and obesity in Scotland. The best way to tackle those problems is by government and industry working together to make Scotland a healthier and wealthier nation.”

FDF Scotland CEO David Thomson added: “We welcome the decision from the Scottish government to align with the regulations in other parts of the UK.

“This creates a level playing field for businesses selling into Scottish stores compared with England and Wales.

“We look forward to working in partnership with the Scottish government to help prepare our businesses for the regulations coming into force. At the same time, our Reformulation for Health Programme will be there to continue to support Scotland’s food and drink businesses to make their products healthier.