The Economic Impacts of Local Authority Takeaway Management Zones around Schools

Abstract

Higher numbers of hot food takeaways in local neighbourhood food environments can be associated with increased exposure to, and consumption of, food that is high in fat and salt, and low in health promoting nutrients. Takeaway management zones enable local authorities in England to limit the number of new hot food takeaways opening. The impacts of takeaway management zones on local economies are currently unknown and yet commercial and other actors often place emphasis on the potential negative economic impacts. We projected the future economic impacts of takeaway management zones in three purposively sampled local authorities using financial micro-data from the UK’s Annual Business Survey. Using the PRIMEtime model, we assessed the value of potential healthcare cost savings due to reductions in population overweight and obesity from reduced exposure to hot food takeaways. We present the results of three scenarios that vary the length of commercial space vacancy (3, 6 or 12 months) when planning permission for a new hot food takeaway is refused. From 2018-2040, the net economic benefit associated with the adoption of a takeaway management zone ranged between £8.49m and £12.78m in Manchester, between £4.67m and £8.15m in Sheffield and between £1.18m and £5.24m in Wandsworth. Despite the concerns of policymakers and objections from industry regarding the potential for negative economic impacts, we find that takeaway management zones are associated with net economic benefits. This is largely driven by the relatively low economic contribution of hot food takeaways and relatively high economic contribution of potential alternative usages.