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Last updated: 10/09/2024

Grocery stores in deprived areas with low supermarket density

Provide business rates relief of 75% to new or expanded businesses selling fresh fruit and vegetables opening in deprived areas with low supermarket density

  • Very low impact on obesity

    A percentage estimate of how much the policy would reduce national obesity rates

    • Relative reduction in obesity prevalence: 0%
  • Moderate evidence quality

    A rating of the strength of evidence, accounting for both reliability and validity of the evidence

    • Reliability and validity rating: 3/5
  • Low cost to governments

    Cost to UK and devolved governments over 5 years

    • Cost to governments over 5 years: £6m
    • Benefit to governments per year: £0

What is the policy?

This policy would provide business rates relief to businesses that operate in deprived areas with low supermarket density and where access to affordable and nutritious food is limited. The aim is to increase the number of grocery stores in these areas in order to make more affordable, varied and higher-quality food more accessible, facilitating healthier diets. 

Recent context

In the UK currently, more than a million people live in areas where there is limited access to fresh and affordable food. Low access to specific food environments is associated with increased rates of obesity (Cooksey-Stowers et al. 2017). Supermarkets play an important role in these communities by providing better food accessibility. They are more likely to offer lower costs, wider selections, and superior food quality than smaller outlets like convenience stores, which are more common in these neighbourhoods (Titis, 2023). In light of these challenges, business rates relief for grocery stores in food deserts hold the potential to significantly alleviate food insecurity and improve population health outcomes. 

Case studies

Food Retail Expansion to Support Health (FRESH), New York City (NYC), USA

Although UK and US food access issues may not be directly comparable, the USA can provide us with interesting lessons.

Considerations for implementation

Business rates relief would require likely legislative change via amendments to the Local Government Finance Act 1988 in England, although different mechanisms would be required in the devolved nations, and some rate reliefs which have previously come into effect were pursued via non-legislative means. For instance Scottish NDRs are covered by the Non Domestic Rates (Scotland) 2020 Act. When designing the policy, policymakers would need to consider how to avoid businesses ‘gamifying’ the policy, for example by carefully considering the definition of an ‘expanded’ business.

Estimating the population impact

We estimated that this policy would reduce the prevalence of UK obesity rates by approximately 0%  

Estimating the per-person impact

We estimated that this policy would reduce average daily calorie intake by approximately 0 kcal per person

Estimating the population reach

In our analytical model, we applied the effect sizes to people living with overweight or obesity. For adults, that is people aged 18 or above with a BMI of 25+. For children, that is children aged 5–17 with a BMI percentile ≥85.

The modelling assumes this policy affects: adults with a BMI ≥ 25, living in areas of deprivation (Index of Multiple Deprivation (IMD) 4 and 5) and in a food desert in England.

Changes in the prevalence of people living with obesity

Analytical modelling found that this policy would have no effect for adults and a small, non-significant effect for children over a five-year period.

Cost and benefits

Cost over 5 years

We estimated that this policy would cost the governments approximately £6 million over five years

Total annual benefit

We estimated that this policy would have an annual benefit of approximately £0

Based on our analysis, and using analysis conducted by the Tony Blair Institute and Frontier Economics we estimate this policy would not lead to monetary benefit for the governments. 

Impact on disease incidence

Based on our analysis and analysis conducted by HealthLumen, there is no evidence that this policy would impact disease incidence avoided after five years. 

Behind the averages: impact on inequalities

Implementing a policy to provide business rates relief for grocery stores in food deserts can help address inequalities in food access. By incentivising the establishment of grocery stores in these regions, the policy enables individuals who may lack transport or access to healthy food options to obtain affordable and nutritious groceries locally. This initiative promotes equity by ensuring that all members of the community have equal access to essential food items, regardless of their socio-economic status or geographic location.

There is no evidence this policy would increase weight stigma.

 

Rating the strength of evidence

We asked experts working in the fields of obesity, food, and health research to rate the strength of the evidence base for each policy, taking into account both reliability (size and consistency) and validity (quality and content) of the evidence. Policies were rated on a Likert scale of 1–5 (none, limited, medium, strong, and very strong evidence base). The Blueprint Expert Advisory Group rated this policy as having a Medium evidence base.

Fund citizen incentives to improve healthier behaviours

Allocate £500 million over five years to fund a programme of financial incentives to improve health behaviours in local authorities (LAs) with the highest obesity rates