Food (Promotion and Placement) (Scotland) Regulations 2025: business and regulatory impact assessment

3. Consultation

3.1 Within Government

Three governance groups were formed to allow for discussion of these policy proposals with government divisions and bodies, key non-government agencies and local authorities.

The Senior Governance Oversight Group met during 2022 to discuss proposals, with an earlier iteration of this group meeting in 2018/19. This group comprised membership from:

• Scottish Government Food and Drink
• Scottish Government Health and Social Care Analysis
• Scottish Government Redress and Survivor Relations
• Food Standards Scotland
• Public Health Scotland

The Financial and Delivery Considerations Group was established to:

• Help inform estimates of potential resource and costing implications
• Facilitate engagement between Scottish Government, Food Standards Scotland, local government and enforcement professionals to support effective enforcement of the policy.

HFSS Implementation Guidance Panel was established to:

• Ensure clear and straightforward communication is used within our Guidance on The Food (Promotion and Placement) (Scotland) Regulations 2025

In addition to those represented through these formal groups, Scottish Government officials have had engaged the following areas of Government in deliberations:

• Scottish Government Children and Families
• Scottish Government Economy
• Scottish Government Wellbeing Economy
• Scottish Government Child Poverty and Social Justice
• Scottish Government Education
• UK Government – Department of Health and Social Care
• Welsh Government – Healthy and Active Branch

Evidence Groups

• A Research Advisory Group was established to consider the evidence base and provide critique and support in understanding the evidence around diet, weight and food promotions.
• A Monitoring and Review Project Group was established to explore and consider the feasibility of implementing a range of studies to enable monitoring and review of any HFSS promotions regulations laid. This includes consideration of studies to set a baseline against which to assess progress and impact.

Both groups bring together economic and analytical advisers across Public Health Scotland, Food Standards Scotland and Scottish Government with policy officials and additional input from academics.

3.2 Public Consultations

The Scottish Government has taken forward several consultations on proposals to restrict the promotion of targeted HFSS food and drink. Public consultation has taken place in 2017, 2018, 2022 and 2024. Summarised outputs of the consultations in 2017, 2018 and 2022 are available in the partial Business and Regulatory Impact Assessment published in 2024.

The Scottish Government published a consultation on a broad range of policy proposals in 2024.

A partial BRIA was published alongside the consultation to enable respondent feedback on the business and regulatory impact of proposals for regulations. The consultation was run in parallel with a programme of stakeholder engagement.

The consultation received 362 responses. Of these 279 (77%) of responses came from individuals and 83 (23%) came from organisations. Organisational responses comprised industry and non-industry respondents.

Analysis of responses to that consultation was published in June 2025.

Section 1: Foods subject to restriction

Most industry respondents agreed that the categories in scope should be consistent with the category descriptors set out in Schedule 1 of the UK Government regulations for England, and that the food category descriptors set out in Schedule 1 sufficiently describe the food categories within scope of regulations.

Most industry respondents set out the potential impact of not aligning with the UK Government and Wales given the potential regulatory burden of divergence only in Scotland.

Section 2: Price promotions

Many industry respondents were not in favour of proposals on price promotions. Almost all agreed that the definitions of multibuy and extra free outlined in the proposals were clear, and noting this reflected the approach taken by UK Government for England. Some industry respondents did not agree that the timescale of 12 months to phase out price promotions on packaging was sufficient.

Section 3: Location promotions

Most industry respondents agreed that the proposals on restriction of location promotions were clearly defined. The approach to location restrictions at front of stores proposed was flagged as an issue for the operation of foodhalls, where a single business has a store within which a distinct food store operates. There was support for aligning with the UK Government’s approach to foodhalls.

Section 4: Businesses within scope

Some industry respondents were not supportive of proposals for the scope of businesses that would be subject to the restrictions, including franchise-type arrangements and symbol group stores.

Section 5: Exemptions from location considerations

Many industry respondents felt the proposed exemptions from location restrictions based on business type were clear and sufficiently defined to enable implementation and enforcement. Most agreed the exemptions from location restrictions based on individual store relevant floor area were clear and sufficiently defined to enable implementation and enforcement.

Section 6: Enforcement and implementation

Industry respondents were mostly supportive of the proposals in relation to enforcement and implementation. Most agreed with the proposed use of administrative sanctions for enforcement of the policy, and with the maximum penalties proposed for the offences in relation to enforcement of the policy.

3.3 Business

Significant engagement and consultation has been undertaken with a broad range of business groups, representatives and organisations. Engagement has spanned manufacturers, retailers, wholesalers and has included individual as well as umbrella organisations, including Scottish Retail Consortium (SRC), Food and Drink Federation Scotland (FDFS), Scottish Wholesale Association (SWA), Scotland Food and Drink, Scottish Grocers Federation (SGF), Association of Convenience Stores (ACS), Federation of Small Business, UK Hospitality.

The Regulatory Review Group that provides independent advice to Scottish Ministers on potential regulation was engaged to advise on the scope and the implementation of the proposed policy. The advice received by Scottish Ministers formed part of the broad range of evidence and feedback that supported the development of the final policy position.

Roundtable sessions

Following publication of the 2024 consultation Scottish Ministers chaired a series of roundtable discussion in May 2024 to allow for in depth discussion on the detail of proposed regulations during the consultation period. The events are summarised below:

• 9 May 2024 - Public Health Stakeholders including NCD Alliance Scotland, Cancer Research UK, Food Standards Scotland and Public Health Scotland.
• 10 May 2024– Retail Stakeholders including SRC, SGF, ACS, Federation of Small Business.
• 16 May 2024– Manufacturing, Wholesale and Industry Stakeholders including Scottish Wholesalers Association, Scotland Food and Drink and Food and Drink Federations Scotland.

A number of topics were raised in these engagements, sometimes from single or a few attendees, including:

• that specialist stores, for example chocolatiers, should be excluded from locations restrictions given the practical concerns of limiting display space within these specialist retail environments;
• that symbol groups are different to franchises due to independent ownership and should not be treated in the same way as franchise businesses;
• that any restrictions should consider the effect on small businesses including the potential for the Deposit Return Scheme to limit floorspace available for product displays; and
• guidance on restrictions should be provided as early as possible, should be developed with input from businesses that would be subject to restriction and attempt to reduce complexity of implementation.

Scottish Government Response to consultation

The Scottish Government has published its earlier responses to consultations including the most recent 2024 consultation which is available at Scottish Government Response - 2024 HFSS Consultation.

In arriving at this final policy position Scottish Ministers have decided to proceed with a range of proposals set out in the 2024 consultation that will come into force from 1 October 2026. There was a broad range of feedback on some other proposals not being taken forward at this time that will be considered further as part of future work to improve the food environment.

The key themes from consultation and engagement with businesses are set out below. These have been taken into account at arriving at a final policy position.

Alignment with England and Wales

Most responses were supportive of alignment with equivalent policy in England and Wales, including the list of targeted foods and alignment on the definitions of different types of promotions. The reason given for this was predominantly related to minimising the regulatory burden on businesses operating across the four nations by having, as far as possible, minimal divergence in each of the four nations on promotions restrictions.

The final policy proposals align with equivalent policy in England and Wales, which the Scottish Government has deemed as the right balance, at this time, between additional regulation of businesses and achieving its public health aims.

Symbol Groups

Some business groups opposed being treated as franchise groups for the purposes of calculating whether the business has over 50 employees. They opposed the headcount being based on the employee headcount of the symbol group and not individual stores, setting out a view that symbol groups operated differently to franchise businesses.

The final policy proposals align with equivalent policy in England, as set out in the UK Government Regulations and guidance relating to symbol group operators. Many symbol group operators, whilst not a franchise, operate in a way that is different to entirely independent small stores including, for instance, access to product ranges, a requirement to purchase specific product groups, a requirement to use specified branding or access to guidance and administrative support. For smaller store sizes (under 2000 sq. ft), locations promotions restrictions won’t apply regardless of the business arrangement.

The Scottish Government has considered the feedback and decided that symbol group stores will be included as in scope of the final policy, aligning the approach taken in England and in Wales. Symbol group stores be treated as operating under “franchise agreements” if they fall within the meaning given to them in the Regulations. Given the broad range of symbol group arrangements, the Scottish Government will engage with businesses and trade associations on clear guidance to support effective implementation for symbol group operators, noting that these arrangements can be complex.

Deposit Return Scheme

Some business stakeholders raised concerns regarding the interaction between HFSS promotions restrictions and the future implementation of the Deposit Return Scheme (DRS). This included that placement of return and recycling capabilities in store may, along with the restriction on location promotions, may further limit store floorspace to display products to customers.

The DRS policy is currently scheduled to be implemented across the UK in 2027. The Scottish Government will continue to consider how the policies interact in Scotland in advance of the implementation of the DRS scheme.

Exemptions for Specialist Retailers

Representatives of specialist retailers, for instance chocolatiers and confectioners, set out concerns that if the locations promotions applied to these settings they would be prevented from displaying products at the front of store or in certain spaces within the store because in many cases all of the products sold were likely to be classed as HFSS.

Given the practical considerations and significant operational challenge for specialist retailers of displaying products in store if they were subject to locations promotion restrictions, the Scottish Government will exempt specialist retailers from locations restrictions. However, price promotion restrictions will apply where these retailers are qualifying businesses. This position aligns with policy in England and Wales.

Guidance and Implementation

Most industry respondents set out the need for comprehensive guidance to support effective implementation of the policy, and sought direct involvement in the development of guidance. The Scottish Government will engage with business representatives in the development of guidance to support effective implementation of the policy from October 2026, in addition to supporting communication to customers in advance of the restrictions coming into force.

Food Halls

Some industry respondents raised an issue relating to the calculation of the size of a store and how this affected the distance from a main entrance where display of HFSS products was prohibited, and the operational effect on food halls.

In these instances, stakeholders set out that many food halls have a public entrance, in addition to the public entrance of the larger whole store. Calculating the relevant floor area for the whole store (including the separate section of the store that does not predominantly contain food products) would significantly increase the prohibited distance that products could not be displayed in instances where a food hall has a public entrance. This risks preventing the food hall from displaying products in a significant proportion of the store. This is likely to create significant practical challenges in these store types.

In these instances, if the food hall was a concession within a larger store, the relevant floor area calculation would apply only to the area of the store that contained the concession.

To ensure the measures can be practically implemented in these circumstances, and ensure greater alignment with concessionary food halls, an alternative method of calculation is being provided for distinct food halls within larger stores run by the same business. In those cases, the prohibited distance will be based on the portion of the store that contains the food hall, and not the relevant floor area of the larger store.

This is consistent with the approach taken by the UK Government in England in guidance.