EU deal could soften effect of new sugar levy
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- Published: Monday, 13 February 2017 07:57
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British efforts to tackle obesity could be rendered futile by a European Union deal that threatens to flood the market with cheap sugar, experts have warned. Campaigners fear the reform, called a “threat to public health”, will allow companies to absorb government measures such as the Soft Drinks Levy, aimed at forcing a reduction in sugar content.
Beginning in 2018, the aim of the levy is to tax companies that make and sell sugary drinks by a total of £1.5 billion over the first three years. But analysts expect a simultaneous boost to food manufacturers’ profits caused by a 15 per cent drop in the price of sugar, meaning the impact of the tax could be reduced. In addition to the tax, Public Health England has launched a programme to persuade the food industry to remove at least 20 per cent of the sugar in its products by 2020.
Sugar production in the EU has historically been subject to quotas, but reforms due to take effect this October will scrap limits on the amount manufacturers can make. The move risks the market being flooded with cheap sugar, enabling retailers to effectively cancel out the levy by cutting prices before tax.
Jack Winkler, emeritus professor of nutrition policy at London Metropolitan University, said: “They are cutting the price of sugar in the midst of an obesity epidemic. This is the most unhealthy policy you could possibly have.”
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