Major New Coalition Opposes Sugar Tax

A wide range of businesses across the UK – including manufacturers, convenience stores, and pubs – have teamed up to push for the cancellation of the proposed new ‘sugar tax’.

The tax, proposed by ex-Chancellor George Osborne, aims to raise £520m annually, which will be used to fund sport in primary schools.  It also aims to reduce consumption of sugary products in an attempt to fight soaring obesity levels in the UK.

However, the coalition – which says its members employ more than 40,000 people across the UK – is arguing that the tax will only result in job losses and higher prices, and will not help reduce obesity.  The coalition has launched a campaign called ‘Face the Fact, Can the Tax’ to promote its view.

The launch comes even as a new report by Oxford Economics predicted that the tax will result in the loss of more than 4,000 jobs across the UK and a £132m drop in economic output.

The British Soft Drinks Association, which is partly funding the campaign, said: “We know from the evidence around the world where they’ve tried a tax that it will not make a difference to obesity. What it will do, as this report shows, is damage thousands of businesses across the entire soft drinks supply chain, from farmers, to manufacturers, to convenience stores and the pub and restaurant trade”.

NAM Implications:
  • No problem with logic, more an issue of connecting with consumer perception re sugar being the new fat…