Opponents of sugar tax launch new campaign
An alliance of soft drinks manufacturers, convenience stores, off licences and pubs known as Face the Facts, Can the Tax will today launch a campaign opposing the sugar tax proposed by former chancellor George Osborne in March. The tax would apply to drinks containing more than 5g of sugar per 100ml and is due to come into operation in April 2018. Last month, thinktank Oxford Economics argued that the tax would only reduce sales by 1.6%, but could cause 4,000 job losses and a £132m fall in the economic contribution of the industry.
Soft drinks manufacturers, pubs, convenience stores and off licences have joined forces to fight a planned sugar tax before the launch of a government consultation.

Former chancellor George Osborne announced plans for a levy on drinks containing more than 5g of sugar per 100ml in his March budget. The proposal is expected to form part of a delayed childhood obesity strategy.

Details of the tax, which is expected to come into force in April 2018, have yet to be confirmed, but health campaigners have suggested it should be 20% of the sale price of a fizzy drink.

The Face the Facts, Can the Tax campaign launching on Tuesday claims the tax will do nothing to tackle obesity while putting thousands of jobs at risk and raising prices.

A study published last month by the thinktank Oxford Economics suggested that the tax would reduce sales of soft drinks sold by just 1.6% but could lead to more than 4,000 job losses in the UK and £132m fall in the industry’s economic contribution.

Gavin Partington, director general of the British Soft Drinks Association which is funding for the campaign, said: “We absolutely agree with the government that obesity levels are too high and action is needed, but burdening businesses and consumers with an ineffective tax is not the answer.”

Brigid Simmonds, chief executive of the British Beer & Pub Association, said the new levy would increase the tax burden on pubs and push up prices.



However, sugary drinks’ link to obesity have been well documented with evidence suggesting they account for 29% of 11- to 18-year-olds’ daily sugar intake. The charity Action on Sugar has said the tax will have an impact on intake because people respond to price.

The campaign comes after soft drinks firms including Coca-Cola spoke out against the tax while the UK industry body, the Food & Drink Federation, urged the government to delay it following the Brexit vote.

The government recently delayed the publication of its childhood obesity strategy, initially planned to be launched last year, until this autumn.