by Marion Nestle
Mar 21 2016

The UK soda tax: a tipping point?

Wonder of wonders, the UK’s Chancellor of the Exchequer, George Osborne, has put a soda tax into his new budget initiative (see BBC account, the video and text of Osborne’s speech, and the Treasury department’s fact sheet on the soda tax).

Here’s how the tax is supposed to work:

Shocking: Many of Britain's most sugary drinks contain more that the daily recommended amount for one person

Osborne says the tax will bring in £520 million ($732 million) in the first year, and he intends to use it to fund more sports in schools.

But it goes into effect in April 2018.  This is to give the industry time to reformulate products with less sugar.  But—the delay also gives the industry ample time to block the tax.

Public Health England supports the tax (see statement).

But the soda industry wasted no time reacting to this bad news.

  • Coke, Pepsi, and other soft drink companies strongly objected.
  • The immediate result: a fall in their stock prices.
  • The immediate reaction: Sue the government.  On what grounds?  Discrimination.  The tax does not affect sugary juices, milkshakes, or processed foods.

New tax: Soft drinks with more than 5g of sugar will be taxed at 6p per can or carton and drinks with more than 8g of sugar will be taxed at 8pm, which if passed on to the consumer means a can of Old Jamaica ginger beer will go up from 58p to 66p

The makers of artificial and alternative sweeteners think this will be a win for them.

Will the tax help reduce obesity?  On its own, that would be asking a lot.

Jamie Oliver, the British chef who favors the tax, says of course it won’t work on its own.  It needs to be accompanied by six additional actions (food labels, better school food, curbs on marketing to kids, etc.).

Why are soda companies so worried about this?  It could be catching.

Will the UK tax stick?  Watch Big Soda pull out every stop on this one.

And think about what they are doing to fight soda taxes when you read or hear that soda companies want to be part of the solution to obesity.

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  • Maria

    Implementing a soda tax is a great idea that is catching
    fire. Although, it will not completely
    fix the obesity problem, it will help in reducing the amount of soda consumed
    by people. According a study published
    by the British Medical Journal, sales of taxed soda decreased by 6% in 2014 and
    continues to decline. The tax money
    collected should be used to further fight the war on obesity. We need to stand up to Big Soda and not allow
    them to stop the implementation of soda taxes.