Latest news with #FrontierEconomics
The Guardian
2 days ago
- Health
- The Guardian
UK's obesity and overweight epidemic costs £126bn a year, study suggests
The cost of the UK's epidemic of overweight and obesity has soared to £126bn a year, far higher than previous estimates, according to a study. The bill includes the costs of NHS care (£12.6bn), the years people spend in poor health because of their weight (£71.4bn) and the damage to the economy (£31bn). The calculations, by Frontier Economics for the Nesta thinktank, have prompted calls from food campaigners for ministers to take more robust action to tackle obesity, for example by extending the sugar tax from fizzy drinks to a wider range of sweet foods and beverages. Henry Dimbleby, the co-founder of the Leon restaurant chain who was commissioned by the previous Conservative government to write a report on the state of the country's food system, said: 'We've created a food system that's poisoning our population and bankrupting the state. 'This report shows that poor diet now costs the UK a shocking £126bn a year. That's not a crisis. That's a collapse.' The fact that 64% of people in Britain are overweight or obese costs the economy £31bn, Frontier found. That is enough for the government to cut income tax by 3p and is more than what is spent annually on policing in the four home nations, it added. Tim Leunig, Nesta's chief economist, said: 'Obesity has doubled since the 90s and causes a host of terrible health problems, like type 2 diabetes and cancer. 'This means obesity makes people less effective at work, forces them to take time off to manage illness or causes them to leave the workforce entirely owing to ill health.' Ministers are grappling with how to address the fact that 2.8 million people across the UK – 700,000 more than when Covid hit – are economically inactive due to illness, according to Office for National Statistics figures. In 2022, Frontier calculated the cost of obesity to be £58bn a year. It revised its estimate in 2023 to £98bn in analysis for the Tony Blair Institute. Its £126bn figure for Nesta is higher because it includes for the first time analysis of the costs of overweight as well as obesity. Kawther Hashem, the head of research at Action on Sugar, said the £126bn annual cost of obesity was staggering and should be a wake-up call. Voluntary action by the food industry to fight obesity has failed, so ministers need to impose compulsory targets on food firms, backed by financial penalties, to greatly reduce the amount of salt and sugar in their products, Hashem added. Nesta estimated the annual economic costs of being overweight and obesity to be: £71.4bn – cost of reduced quality of life and mortality. £12.6bn – financial cost of treatment for NHS. £12.1bn – from unemployment due to overweight and obesity. £10.5bn – cost of informal care. £9.7bn – lower productivity among those still working. £8.3bn – sick days due to weight-related illness. £1.2bn – cost of formal care. £700m – lost output due to weight-related early death. Katharine Jenner, the director of the Obesity Health Alliance, urged ministers to extend the sugar tax on fizzy drinks and limit the amount of sugar in baby and toddler food. Leunig said the advertising of unhealthy food should be restricted, front of pack labelling introduced and more money put into weight-loss drugs. Nesta's report said that the costs of excess weight will keep growing and could hit £150bn by 2035 without firm action to fight obesity. It states: 'Obesity-related costs are projected to keep rising over the next decade. By 2035, this report estimates the annual cost of excess weight will reach £150bn (in 2025 prices), with productivity losses alone accounting for £36.3bn a year. 'Without a meaningful policy shift to slow – let alone reverse – the growth in obesity, its impact on productivity is set to rise by 18% over the next 10 years in real terms.' Wes Streeting, the health secretary, said that more obese people in England would be able to access NHS weight management services – and weight-loss drugs – as a result of the government's 10-year plan for the NHS, which is coming out on Thursday.
RNZ News
15-06-2025
- Business
- RNZ News
Apology: Live broadcast 4 June, 2025
In our live discussion on Wednesday, 4 June about electricity market reform, former Transpower Chair Keith Turner made statements about the consultancy leading the review, Frontier Economics. RNZ subsequently made that interview available online before undertaking an inquiry of its own regarding those statements. RNZ accepts that certain statements made by Mr Turner were inaccurate and without foundation. RNZ understands from Frontier that it has a strong reputation in its field in Australia and is actively engaging with almost every retail generator in that jurisdiction at the present time. RNZ unreservedly withdraws those statements and apologises to Frontier for publishing Mr Turner's statements without undertaking any independent verification.
Telegraph
10-06-2025
- Health
- Telegraph
Long-term sickness has made economy 10pc smaller
The long-term sickness crisis means Britain's economy is 10 per cent smaller than it otherwise would be, according to a report produced for the NHS. Tackling ill-health, increasing employment rates and preventing premature deaths by making better use of innovation in the health service would give Britain a £246 billion boost – equivalent to around a 10th of GDP – according to research by Frontier Economics, a consultancy firm. Wes Streeting, the Health Secretary, hailed the 'landmark study' as evidence of what the NHS could achieve 'if we harness the massive potential at our fingertips'. It comes as Rachel Reeves, the Chancellor, is set to gamble on the NHS to boost growth in this week's spending review, with a £30 billion funding uplift at the expense of other public services. This equates to an around £17 billion real-terms increase over the next three years and comes after a £22 billion rise was announced in October, with Sir Keir Starmer having pinned the success of his premiership on eliminating the 7.42 million NHS backlog. The new research found the 'size of the prize' for getting the 4.2 million unemployed people with long-term sickness back into work would increase GDP by £125 billion alone. It further found that reducing the number of sick days employees take, in particular those on long-term sick leave from work, would provide an extra £45 billion. It said that 'reducing long-term absences by 20 per cent would be worth nearly £10 billion', for example. The remainder of the economic benefits came through delaying the 132,000 early deaths that occur to working-age people each year because of preventable diseases such as heart attacks, increasing the hours of people who work part-time because of a 'work-limiting health condition', and reducing the 'in-work productivity' lost to sickness. It means the 'total productivity impact of reducing ill-health on the UK economy is up to £246 billion', which equates to '9.62 per cent of GDP', the researchers said. The study, commissioned by the Health Innovation Network, which includes NHS and health industry leaders, said there were four major causes of sickness impacting the health service and driving worklessness. These were mental health, which alone accounts for almost £50 billion in lost productivity, musculoskeletal conditions such as arthritis and back pain, heart disease and lung-related conditions. Simple measures to identify and treat high cholesterol and high blood pressure, for example, could add more than £2 billion to the economy, it said, which could include treating more people with cheap statins sooner. It also found potential productivity gains increased to £278 billion if the UK could reduce sickness and absence among the NHS workforce and increase the amount of foreign investment. It said the UK was lagging behind France and Germany when it comes to research and clinical trials, as well as the number of skilled workers and pharmaceutical employees. Mr Streeting said: 'We often talk about the challenges associated with health care in this country, but this report shows there are lots of opportunities too if we harness the massive potential at our fingertips. 'The NHS is uniquely placed to take advantage of innovation, and this landmark study reveals the prize on offer – potential benefits worth £246 billion annually and the ability to free up 233 million hours for our NHS workforce, proving that health innovation isn't just good for patients, it's vital for our economy and the taxpayer. 'By focusing on key conditions like mental health and cardiovascular disease, and embracing AI, telemedicine and genomic research, we can improve patient outcomes while creating high-skilled jobs and attracting global investment.' He said the findings of the research would 'help inform our mission to build a health service that delivers for patients and contributes to a stronger economy'. One of the key health issues driving increases in heart disease, cancer and joint and bone conditions is obesity. A new trial revealed by The Telegraph last year is examining whether weight-loss jab Mounjaro can reduce unemployment and workplace absence levels in Greater Manchester. That study, led by Health Innovation Manchester and pharmaceutical firm Lilly, is part of plans to explore how to reduce the £3.2 billion impact of obesity on Manchester's economy. Professor Ben Bridgewater, chief executive of Health Innovation Manchester, said: 'There is so much potential for health innovation to make lives better for people, save the NHS money and increase the country's workforce productivity. 'We know that the massive impact innovation in obesity can make for the people and economy of Greater Manchester. We are excited about this new report that quantifies just how large an opportunity exists nationally from innovation in health care.' The new research paper, called Defining the Size of the Health Innovation Prize, also said that as ill-health is predicted to increase with time, the potential productivity gains from preventing it and keeping people in work increases too. The researchers estimate by 2035 the GDP lost to ill-health - as things stand - will be between £283 billion and £332 billion. Matthew Taylor, chief executive of the NHS Confederation, said the report showed what could be achieved, but that 'more needs to be done to fully realise the potential of innovation' and that NHS leaders had told them 'a lack of time, funding that supports long-term implementation and scaling along with inadequate infrastructure is limiting their ability to seek new ideas and embed at scale those already in the system'. He said innovation 'needs be managed in a way that works for those working across the NHS' and would 'require a skilled digital and innovation team and a wider workforce to support adoption' and appropriate infrastructure.
Yahoo
20-05-2025
- Business
- Yahoo
New report shows UK luxury exports to EU down 43% post-Brexit
Walpole, the body representing British luxury industry, has urged governmental intervention to address the obstacles hindering trade with the EU for the luxury sector following Brexit. The sector, valued at £81bn ($108bn), is facing challenges post-Brexit, as detailed in Walpole's latest Trading with Europe report 2025. The study, conducted by Frontier Economics, revealed that following the UK's departure from the EU, luxury exports have suffered with an average drop of 43%. This "Brexit effect" is substantial, given the industry's role in sustaining over 450,000 jobs and contributing £14.6bn to the Treasury. Fashion and accessories exports have taken the hardest hit, plummeting 64%, while interior design, home goods and craftsmanship exports have fallen by 50%. The complexities of UK-EU trade relations have been exacerbated by increased tariffs from the US and diminished demand from Chinese consumers. The study illustrates a shift in export dynamics, with EU exports dropping from 42% of total luxury exports in 2017 to 32% in 2022. Despite this decline, the EU market remains paramount for UK luxury goods, outpacing both the US and Asia, which each account for 22% of exports and the Gulf region at 14%. Post-Brexit trade barriers have introduced increased paperwork, higher costs and delays in exports due to new certification demands and customs intricacies. It claims that these challenges have disproportionately affected brands that maintain high customer service standards. Inconsistent rule enforcement across EU member states and ports further complicates matters by introducing unpredictability into costs and timelines. Complications with VAT refunds and reclamation processes have led some businesses to incur losses on returned items. Marketing efforts have also been stifled by difficulties in distributing product samples to journalists and influencers. Changing sustainability standards and labelling requirements have also injected operational uncertainty into business planning. In response to these challenges, some British luxury brands have set up distribution centres and commercial operations within the EU to redirect investment away from potential UK growth. Walpole CEO Helen Brocklebank stated: "The British luxury sector has incredible growth potential, with a projection to reach £125bn by 2028. "However, to achieve this ambition, we cannot afford to have one arm tied behind our back. Strong links and favourable trading with Europe remain essential to reaching this forecast, alongside our success in other global markets, and key to supporting craft-led and high value manufacturing in the UK." To address issues within the luxury industry, Walpole has made a series of recommendations to the UK government, including joining the Pan-Euro-Mediterranean Convention to support key exports, implementing a digital labelling system, negotiating better VAT terms with the EU and securing an SPS (Agreement on the Application of Sanitary and Phytosanitary Measures). "New report shows UK luxury exports to EU down 43% post-Brexit" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
19-05-2025
- Business
- Bloomberg
UK Luxury Lobby Blames Brexit for Growth Lag in EU-Bound Exports
UK exports of high-end items to the European Union have lagged behind the broader growth of the country's luxury sector, a trend that industry lobby Walpole attributes to Brexit. The value of shipments of British designer goods to the EU rose to £18 billion ($23.9 billion) in 2022, from £16 billion in 2017, a pace that's far below the industry's 11% in compound annual growth during the same period, according to research conducted by Frontier Economics for the industry lobby.
