UK Soft Drinks Industry Braces Itself For Sugar Tax as Government Publishes Childhood Obesity Plan

The plan includes a voluntary target to reduce sugar in children’s food and drinks by 20 percent, whilst encouraging more physical activity in primary school children, namely a plan for kids to exercise for an hour a day. Funds raised from the sugar tax will go directly towards this.

 

“Our children are consuming too many calories - and, in particular, too much sugar. Teenagers in England are the biggest consumers of sugar-sweetened drinks in Europe. The Scientific Advisory Committee on Nutrition (SACN) recently concluded that sugar consumption increases the risk of consuming too many calories, the risk of tooth decay, and that consumption of sugar sweetened beverages is associated with increased risk of type 2 diabetes and linked to higher weight in children,” says the document.

 

“A single 330ml can of a soft drink with added sugar (which can contain as much as 35g of sugar), may instantly take a child over their maximum recommended daily intake of sugar.”

 

“As a first major step towards tackling childhood obesity, we will be introducing a soft drinks industry levy across the UK. In England, the revenue from the levy will be invested in programs to reduce obesity and encourage physical activity and balanced diets for school age children. This includes doubling the Primary PE and Sport Premium and putting a further £10 million a year into school healthy breakfast clubs to give more children a healthier start to their day.”

 

The government says the levy - which was first mooted by chancellor George Osborne in the March Budget - is directed towards producers of soft drinks, not consumers and is designed to encourage the soft drinks industry to reduce the amount of sugar in their products and move consumers towards healthier alternatives.

 

Companies will be given two years to lower the sugar in beverages and avoid facing the levy if they take action.

 

The plan does recognize reformulation and sugar reduction work that has already taken place within the soft drinks industry, but says the levy will create stronger incentives for action.

 

Alongside this plan, HM Treasury are consulting on the technical detail of the soft drinks industry levy over the summer, and will legislate in the Finance Bill 2017.

 

“We aim to significantly reduce England’s rate of childhood obesity within the next ten years. We are confident our approach will reduce childhood obesity while respecting consumer choice, economic realities and, ultimately, our need to eat. Although we are clear in our goals and firm in the action we will take, the launch of this plan represents the start of the conversation, rather than the final word.”

 

Health charities, campaign groups and NGOs have heavily criticized the plan in not doing enough to tackle obesity, while the soft drinks industry says the sugar tax is not the way to tackle the weight gain in kids and is too tough on the industry.

 

Responding to the government’s plan, director general of the Food and Drink Federation, says introducing a sugar tax focuses too much on one single point, rather than obesity being the result of excess calories from a variety of sources.

 

“Food and drink manufacturers recognize our responsibility in meeting the challenges posed by obesity. Government has acknowledged that working in partnership with industry on a voluntary basis is the best way to make progress on this crucial issue. We are committed to that partnership,” he says.

 

“The proposed tax on soft drinks is a disappointing diversion from effective measures to tackle obesity. Soft drink companies are already making great progress to reduce sugars from their products, having achieved a 16% reduction between 2012 and 2016. Indeed, many individual manufacturers have a proud track record of reformulation to remove salt, fat and sugar from food and drinks and this work will continue.”

 

“However the target set for sugars reduction in the Plan is flawed. It focuses too strongly on the role of this single nutrient, when obesity is caused by excess calories from any nutrient. Moreover the target is unlikely to be technically practical across all the selected food categories.  Reformulation is difficult and costly:  there are different challenges for each product; recipe change can only proceed at a pace dictated by consumers.”

 

“We will of course do everything we can in the next six months to work towards a practicable reformulation solution while continuing to urge the Government to adopt a ‘whole diet’ approach.”

 

The plan does focus on reducing sugar consumption, however it does mention salt and fat reductions as well.

 

“Sugar reductions should be accompanied by reductions in calories and should not be compensated for by increases in saturated fat. Work to achieve salt targets should continue alongside the sugar reduction program. From 2017, the program will be extended to include setting targets to reduce total calories in a wider range of products contributing to children’s calorie intake and across all sectors, including the out of home sector. Work on saturated fat will be further reviewed in light of SACN recommendations due in 2017,” it says.