UK Drinks Body Slams Sugar Tax but Welcomes Other Parts of Queen’s Speech

20 May 2016 – The UK's Food and Drinks Federation has reiterated its opposition to the proposed sugar tax, saying "the case for a soft drinks levy looks no stronger today than when it was first announced," though it has welcomed other government plans introduced in the Queen's Speech this week.

The sugar tax, first proposed in March this year in George Osborne’s Budget, has ruffled feathers in the drinks industry, who argue it unfairly targets sugary drinks in a bid to cut obesity levels in the UK.

This week the Queen detailed the list of the proposals the government hopes to get approved by Parliament over the coming year, including the proposed sugar tax.

Ian Wright, director general of the FDF, which represents food and drink makers in the UK, said: "The case for a soft drinks levy looks no stronger today than when it was first announced in March this year. Data from Mexico's tax shows only a six calorie reduction in energy intake per person, per day.”

"Steady reformulation – to take fat, salt and sugars out of foods and drinks – and portion control are the most effective policy interventions and the industry remains committed to building on the good progress that has been made."

“Obesity will only be beaten by a national partnership involving Government, the NHS and health professionals, schools, retailers, restaurants and food and drink manufacturers.”

But other parts of this Queen Speech were welcomed by the FDF.

Wright added: “We welcome the government's commitment to supporting business and making the UK a more competitive economy. Improving productivity in UK food and drink manufacturing (which adds £22 billion annually to the Exchequer, supports 400,000 jobs directly, and feeds millions everyday) should be a shared national priority.”

“If we are to continue to invest, innovate and create highly skilled jobs and apprenticeships, we really need to address and manage the increasing regulatory costs and reporting obligations that we face. We hope the Better Markets Bill will achieve that."

“With its scale and reach across the UK, food and drink manufacturing will have a major role to play fulfilling Government's ambition to create a Northern Powerhouse. For example, Yorkshire and the Humber's 800 plus food and drink manufacturers achieve a turnover of £10bn alone, the highest of all English regions."

“Clearly the Higher Education and Research Bill has the potential to bring far-reaching change to our university sector. We welcome all efforts to encourage universities to focus on innovation and work collaboratively with industry. “

“The partnership between the food and drink industry and Sheffield Hallam University to develop a Centre of Excellence in Food Engineering is a great example of this this collaborative approach in practice. For Government's Childhood Obesity Strategy to be effective, it must be based on sound science and be truly comprehensive, as promised."