First shots in sugar tax wars

Calls for a heavy tax on high-sugary food and drink have been blasted by industry leaders, who have warned the Government that the trade could be left millions of pounds out of pocket if such a duty was enforced.

High-profile chef Jamie Oliver, along with lobby groups such as Action on Sugar (AoS), recently increased pressure on the Government to implement a 20% tax on sugary drinks and foods. And the release of the Common’s Health Select Committee’s childhood obesity report earlier this week added to the tension, after Prime Minister David Cameron was again urged to enforce the tax.

The UK’s growing obesity epidemic sparked the sugar tax debate, following widely reported figures suggesting 67% of men and 57% of women in the UK are overweight or obese.

While industry leaders do not deny the UK is in the midst of an obesity crisis, they disagree a tax on sugar is the solution. For example, the hospitality sector has already worked to reformulate menus and more venues are now providing nutritional information to help consumers make healthy choices, according to ALMR chief executive Kate Nicholls.

“The eating and drinking-out sector recognises that an imbalanced diet impacts our health and wellbeing, but we must stress that a sugar tax on its own is unlikely to address the majority of the Government’s health concerns,” she said.

‘Felt by pubs’​

“This additional cost will be felt by pubs and bars, many of whom have worked very hard over recent years to provide their customers with healthy options. Licensed operators have increased the sophistication of their alcohol labelling to provide customers with information on alcohol units and calorific content and to make an informed choice.”

A heavy tax on sugar would be burdensome for pubs and brewers, which are already facing considerable levels of tax including beer duty and business rates, cautioned the British Beer & Pub Association chief executive Brigid Simmonds.

“For pubs, beer is certainly our mainstay, but soft drinks, including low-sugar and diet options, are still a vital part of the pub offer and a great choice for anyone driving,” she said.

While food and drink businesses were defending themselves, few involved in the debate had considered the impact a sugar tax would have on already hard-pressed consumers, pointed out Food and Drink Federation director general Ian Wright.

Billions of pounds were already being paid in VAT on food and drink by Brits every year, he said. “The arbitrary new tax recommended by the committee, which, if introduced, would inevitably be increased year-on-year and be extended to other foods, would leave consumers paying significantly more every week for the products they love.”

Yet, those who called for the tax claim it is the only way, along with reformulation, to reduce sugar consumption in the UK and to combat obesity and type 2 diabetes.

AoS presented Cameron with a six-point plan to prevent the UK’s obesity and type 2 diabetes crisis from spiralling out of control. Within the plan, it called for the amount of sugar in high-sugary food and drink to be reduced by 50% within the next five years and for the enforcement of a 20% tax on all sugar-sweetened soft drinks and confectionery.

Such action, it claimed, would help cut the £5.1bn the National Health Service spends annually on obesity-related diseases and the £10bn-a-year spent on diabetes.

‘Prevent obesity’​

After issuing the plan to Cameron, Professor Graham MacGregor, AoS chair, said: “David Cameron now has a unique opportunity to produce a coherent, structured, evidence-based plan to prevent obesity, type 2 diabetes and tooth decay. These conditions are preventable if the food environment is changed. Current policies are ineffective and we now require policies that work.”

Yet, according to consumer analyst Mintel, new research showed consumers were already reducing their sugar intake and searching for low-sugar and sugar-free options. For example, 65% of UK consumers quizzed by Mintel agreed that a healthy diet should be low in sugar.

Consumers were now more likely to police their diets, which could make any form of sugar tax redundant, other commentators have claimed.

“Excessive sugar consumption continues to be criticised by the media and health professionals alike, resulting in today’s sugar backlash,” said Mintel food and drink research manager Chris Brockman.

“This has led to sugar replacing fat and salt as the new dietary pariah across Europe. There is, therefore, a key opportunity for brands to address consumer fears and adapt their products to carry a low, no or reduced-sugar claims.”

So, while the country awaits a decision on the sugar tax, it makes sense for the trade to work towards low and no-sugar options for the growing number of consumers seeking healthier choices.