Sugar levy: a tax Government ‘would rather not collect’
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- Published: Wednesday, 07 December 2016 07:48
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The Government has set out its response to the consultation on the ‘sugar tax.’ But a statement by Jane Ellison, financial secretary to the Treasury, said it was a levy that ‘we would rather not collect’. They would prefer to see firms reformulating their products to reduce the sugar content.
The Soft Drinks Industry Levy, to give it the correct term, is described as ‘a central pillar in their childhood obesity plan. They say the levy has been designed to drive reformulation in the soft drinks market, and over the past few months they have seen some effects of the policy.
Several major companies in the UK soft drinks market have, the Government says, recently strengthened their commitment to reformulate and therefore some of these will not pay the levy on any of their drinks by the time the tax goes live in April 2018. The government claims that it has always been clear that this is a levy ‘we would rather not collect – but one which is necessary to help drive down sugar consumption and tackle childhood obesity’.
Across England the government says it will invest the revenue during this parliament in giving school-aged children a better and healthier future, including programmes to reduce obesity and encourage physical activity and balanced diets.
However according to the Daily Telegraph, although the tax is forecast to raise £520 million a year, which is expected to be spent on sport in primary schools, critics say that the estimates were not reliable, and suggested the public could end up having to find extra money to ensure school sports are not left cash-strapped.
Last month a study found teenagers were drinking the equivalent of almost a bath full of sugary drinks every year, with those under the age of 10 drinking halves that amount. Health campaigners have welcomed the idea of a sugar tax, saying it is crucial to “turning the tide” of the record levels of childhood obesity. However, a report by the TaxPayers’ Alliance has criticised the idea. It says any shortfall in revenues from the tax, caused by the public buying fewer sugary drinks, could leave holes in school budgets which would have to be filled.
John O’Connell, chief executive of the pressure group, said: “This new research just adds to the weight of evidence that shows the sugar tax is an ill-thought-out reaction to pressure from those in the public health lobby. “Lasting change will happen via a long-term cultural shift, not by burdening the poorest families with a higher cost of living.”
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