US investment in the UK food and drink sector could come under pressure unless government takes a more coordinated approach to regulation, according to a new report published by BritishAmerican Business (BAB).

The report highlights concerns that the cumulative impact of overlapping regulatory changes is increasing costs and creating uncertainty for the food and drink industry. These include restrictions on the advertising and promotion of products high in fat, sugar and salt (HFSS), proposed changes to the Nutrient Profiling Model (NPM), and a range of environmental, packaging and labelling requirements.

Food and drink manufacturing contributes £42 billion to the UK economy and supports nearly half a million jobs. US-headquartered companies have invested hundreds of millions of pounds in UK manufacturing, innovation and supply chains in recent years, but as businesses weigh investment opportunities across international markets, regulatory complexity and uncertainty are becoming increasingly important considerations.

While individual regulatory measures are intended to deliver important public health and environmental benefits, the report argues that government must also consider their combined impact on competitiveness, investment and growth. This is particularly important against a backdrop of geopolitical uncertainty, energy market volatility and ongoing pressure on food prices.

The report comes as the UK government closes its consultation on applying a revised Nutrient Profiling Model (NPM) to advertising and promotions restrictions. BAB’s response urges policymakers to ensure any changes are evidence-based, proportionate and implemented in a way that gives businesses the certainty needed to continue investing, innovating and manufacturing in the UK.

BritishAmerican Business CEO Duncan Edwards said:

“The UK’s food and drink sector is one of the country’s economic success stories and an important part of the transatlantic relationship. It supports jobs and attracts significant investment from US companies.

“The UK government has ambitious objectives on growth, public health and sustainability, and business shares those goals. But there is a growing risk that policies developed in isolation create unintended consequences when layered on top of one another. Competitiveness must remain part of the conversation.

“Investment decisions are ultimately about confidence. If regulatory change becomes too complex, unpredictable or costly, the UK risks making itself less attractive for the very investment that supports jobs, innovation and growth.”