Ministers hope the food industry will ultimately reduce sugar in foods like cereals, yoghurts and bread by 20 per cent, starting with a cut of 5 per cent in the first year.
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However, the coalition – which says its members employ more than 40,000 people across the United Kingdom – is arguing that the tax will only result in job losses and higher prices, and will not help reduce obesity.
James Bielby, chief executive, Federation of Wholesale Distributors warned, “Introducing a levy on soft drinks in the United Kingdom creates a new opportunity for unscrupulous importers to bring tax-avoided products into that supply chain”. The Peterborough-based company, which is a subsidiary of Primark owner Associated British Foods, is the sole British producer of sugar from sugar beet. The tax, details of which have yet to be released by the government, is anticipated to come into effect in April 2018.
Meanwhile, Association of Licensed Multiple Retailers ceo Kate Nicholls said the tax would not be the “silver bullet” that would tackle the UK’s obesity problems.
Brigid Simmonds, chief executive of the British Beer and Pub Association (BBPA), said the tax would be a “burden” on pubs and lead to price rises.
“Companies have two years before the levy comes into force to adapt, and it’s created to encourage them to reformulate their products so there is less added sugar in soft drinks. An additional cost burden is unlikely to help in this regard”.
Gavin Partington, director general of the British Soft Drinks Association, said: “At a time of economic uncertainty the government needs to be supporting these businesses and working with industry to support actions that are already making a difference, such as reformulation, smaller packs, and more marketing of the many no sugar options now available”. This research shows the soft drinks tax is not only ineffective in fighting obesity but will come at a significant price for the economy, costing thousands of jobs.
“No single measure will tackle the spiralling obesity trend our country is facing today and the strategy must include a number of different policies such as a levy on sugary drinks and more restrictions on advertising”.
Businesses from across the hospitality industry, manufacturing, wholesalers and retailers have thrown their weight behind the campaign.
The associations it has tied up with range from vending machine operators to farmers. As a result, manufacturers of the tax will face higher rates for drinks with more than 8g of sugar per 100ml, while taxes will be lower for drinks with 5g per 100ml.
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The Local Government Association’s community wellbeing chief Izzi Seccombe said: “We have called for fundamental reforms, such as a mandatory reduction of sugar in soft drinks, better sugar labelling on food and drink products, calorie counts on menus in chain restaurants, and for councils to be given powers to ban junk food advertising near schools”. The consultation period runs until October 13.
