In the News

From Fries to Fiscal Crisis: The Economic Toll of the UK’s Junk Food Addiction

Geoff Riley

17th November 2024

Britain’s unhealthy eating habits are leaving a devastating mark on public finances. According to a startling new report by the Food, Farming and Countryside Commission (FFCC), the UK’s love affair with foods high in fat, salt, and sugar is burning a £268 billion-sized hole in the economy each year. That’s more than the entire NHS budget! The report lays out a bitter truth: our food system, propped up by “Big Food,” is leaving us sick, and the economic bill is becoming impossible to swallow.

The figure, eye-wateringly high, includes £92 billion in direct costs for the government to treat diet-related diseases, such as type 2 diabetes and heart disease. Tackling these conditions guzzles NHS resources at a time when healthcare budgets are already stretched thinner than a low-calorie crisp. It’s clear that what we eat doesn’t just impact our waistlines; it’s slimming down the nation's wallet too.

But wait—there's more! The remaining £176 billion represents lost productivity, with workers too sick to contribute fully to the economy, plus the human costs of pain and early death. In total, the economic consequences of unhealthy eating are not just heavy but obese in their scale.

Professor Tim Jackson, the economist behind the FFCC study, summed it up: “£268 billion is a conservative estimate.” His findings are bound to turn up the heat on politicians, especially with Labour leader Keir Starmer’s vows to combat junk food advertising and tackle Britain’s mounting health crisis.

Ultra-processed foods (UPFs), those convenient but often nutrient-poor foods making up 57% of the adult diet, take center stage as villains of this tale. From fizzy drinks to colorful snack packets, these foods have been carefully engineered to hook our taste buds and boost profits—often at the expense of our health. Sue Pritchard, FFCC’s chief executive, doesn’t mince her words: “Big Food has sacrificed our health for their profits, and we’re paying the price.”

The solution seems simple: eat better! But for many, it’s a bitter pill to swallow. Meeting the government’s Eatwell Guide would cost UK households an additional £38 a week—doubling food bills for poorer families. And as food prices continue to rise, can we really afford to eat healthily? This is where economic inequity intersects with public health policy. Pritchard suggests government-issued fruit and vegetable vouchers for low-income families as a first step toward change.

There’s no denying that reforming our food system is a complex task. But without decisive action, the costs—both human and financial—will continue to rise. Britain needs more carrots, fewer sticks of butter, and a commitment to a healthier future. The economic stakes are clear, and in the fight against Big Food, our nation’s well-being is on the line.

Glossary of Key Economics Terms

  • Chronic Disease: Long-lasting conditions like diabetes and heart disease that often arise from poor diet and lifestyle choices.
  • De-merit Goods: Products deemed socially harmful, often leading to negative consumption externalities.
  • Externalities: Economic side effects or consequences of an activity that affect other parties who did not choose to be involved in that activity.
  • Indirect Costs: Costs not captured directly in market transactions, such as lost productivity or human suffering.
  • Metabolic Dysfunction: A breakdown in the body's process of using energy, often leading to chronic conditions.
  • Productivity Losses: Economic output lost due to workers being too sick to work.
  • Ultra-Processed Foods (UPFs): Industrially produced foods high in added sugars, fats, and preservatives, often associated with poor health outcomes.

Retrieval Questions for A-Level Students

  1. What are de-merit goods, and how do they relate to Britain’s current food consumption trends?
  2. How do ultra-processed foods contribute to negative consumption externalities in the UK economy?
  3. What are the main components of the £268 billion cost related to Britain’s unhealthy food system?
  4. Why is it difficult for poorer households to follow the government’s Eatwell Guide, according to the report?
  5. What role does "Big Food" play in the UK's current public health crisis?
  6. Discuss how indirect costs such as productivity losses impact the UK economy due to diet-related illnesses.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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