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Supermarkets could face fines if they fail to promote healthier food options, as part of a new Government scheme aimed at combating obesity.

The "healthy food standard" will be enforced on retailers and manufacturers across England in an ambitious 10-year plan to reduce diet-related illnesses, announced by the Department of Health and Social Care (DHSC).

Originally conceived by innovation agency Nesta, the initiative sets compulsory health targets for retailers, allowing them to choose how to achieve them, whether through recipe changes, discounts on healthy products, or rearranging store layouts.

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Retail giants will have to submit sales data and those not meeting the benchmarks might be hit with financial penalties, as per Nesta's recommendations.

After analysing 36 million supermarket transactions, Nesta determined the average shopping basket's health score is 67 out of 100, aiming to increase it to 69.

Nesta's research indicates that improving the health score by just two pointscould slash obesity rates by about 20% over three years, aiding over three million individuals to reach a healthier weight.

Health Secretary Wes Streeting remarked: "If everyone who is overweight reduced their calorie intake by around 200 calories a day – the equivalent of a bottle of fizzy drink – obesity would be halved."

He added: "This Government's ambition for kids today is for them to be part of the healthiest generation of children ever. That is within our grasp. With the smart steps we're taking today, we can give every child a healthy start to life.

"The Government plans to introduce mandatory reporting by the end of this parliament in 2029, and aim for the standard to be achieved further into the next.

"Our brilliant supermarkets already do so much work for our communities and are trying to make their stores healthier, and we want to work with them and other businesses to create a level playing field.

"Through our new healthy food standard, we will make the healthy choice the easy choice, because prevention is better than cure."

Tesco's chief executive Ken Murphy has given his backing to the news, and Sainsbury's boss Simon Roberts describes it as an "important and positive step forward in helping the nation to eat well".

Katharine Jenner, Obesity Health Alliance director, endorsed the strategy, stating: "This is a fair and evidence-based prescription for better health; big businesses urgently need the government to level the playing field to help them focus on selling products that help people live well."

Environment Secretary Steve Reed announced: "Our food strategy will bring together the health plan, food producers and retailers to make sure we can feed the nation more healthily while growing the economic success of our food sector."

Anna Taylor, executive director of the Food Foundation, weighed in with praise for the forthcoming changes, saying: "The introduction of mandatory reporting by all large food companies, including takeaway chains, on the healthiness of their food sales is a game changer."

Sonia Pombo, the head of impact and research at Action on Salt, stated: "This will help shift the responsibility away from individuals and toward a food system that truly supports healthier choices."