Growing sugar tax support prompts fears of 'major impact' on pubs

A tax of at least 10% to 20% on high sugar content items, such as fizzy drinks, has been recommended by PHE.
Gavin Partington, director general at the British Soft Drinks Association, said that although it welcomes PHE’s evidence, a tax would be damaging to pubs.

'Major impact'

“Soft drinks are important to pubs with £1 in every £20 spent on soft drinks — and with pubs so important to local communities, any increase in cost will have a major impact on them — while doing little for the nation’s health,” he said.
PHE claims such initiatives have worked in other countries — but Partington believes the trade is already tackling obesity. He said: “We have led the way in reducing calories — down 7.5% across the soft drinks market since 2012. By contrast, a tax in Mexico has resulted in an average reduction of only six calories per day from diets, which seems unlikely to have a major impact on levels of obesity.”

Burden

Beer has very little sugar, but the British Beer and Pub Association chief executive Brigid Simmonds said a sugar tax would still “increase the burden of taxation” on brewers and pubs.
“They already face very high levels of tax, with both beer duty and business
rates having a huge impact,” she said.
“Soft drinks, including low sugar and diet options, are still a vital part of the pub offer, and a great choice for anyone driving.”
JD Wetherspoon’s boss Tim Martin said a sugar tax would cost pubs and could lead to closures​.

And the Association of Licensed Multiple Retailers chief executive Kate Nicholls said the tax would be a burden on an industry, already striving to promote health.

“We have, as a sector, worked hard to reduce sugar content, particularly on children’s menus. A tax would fail to recognise this work and push additional costs on to business and customers,” she said.

Obesity

The Department of Health (DoH) is aiming to turn the tide on childhood obesity, working closely with PHE, and the strategy will be published in the coming months.
A spokesman for the DoH told the Publican’s Morning Advertiser: “We are developing a comprehensive strategy looking at all the factors, including sugar consumption, that contribute to a child becoming overweight.
“Evidence on sugar reduction is integral to our policy development to support our childhood obesity strategy — that’s why we commissioned it.”
PHE’s director of diet and obesity Dr Alison Tedstone said the point of the tax is to nudge people away from purchasing high-sugar items and towards products consistent with a healthy diet.