UK soft drinks tax comment

A UK tax on added sugar soft drinks was announced by the British Chancellor yesterday. The measure contained many surprises.

• Although its target is current obesity, it won’t come into effect until April 2018.

• It’s not part of a long awaited childhood obesity strategy, because the Government postponed this just three weeks ago.

• The Chancellor went into much disputed medical territory in arguing: “We knew there was a problem with sugary drinks. We knew it caused disease.”

• It’s calculated to raise £520 million in its first year, without the Government stating the actual amount.

• My biggest surprise was that this revenue calculation was partly based on figures from Zenith International, my own business.

• The BBC has estimated rates of 18 pence per litre for drinks up to 5 grams of total sugar per 100ml and 24 pence per litre for drinks up to 8 grams of total sugar per 100ml.

• That could double some supermarket own label cola prices.

• Yet so many other sugary products are excluded.

The Food and Drink Federation described the announcement as political theatre. And so it seems.

• I very much doubt it will raise £520 million.

• I do think it will lead to widespread reformulation of some drinks, as has already happened for many products, especially for children in school.

• Even though the funds raised will reportedly be used for improving sports facilities in schools, I also doubt the tax will make a material contribution to reducing obesity.

• Really reducing obesity requires a far broader programme that also involves parents and health professionals, information and training, portion and serving moderation as well as activity and exercise.

• My great worry is that the semblance of action will distract attention from developing a proper plan.

• Obesity does need tackling. With all round action.