This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/society/2017/oct/11/big-soda-small-steps-philip-hammond-must-extend-pop-tax-to-sweets

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Big Soda, small steps: Philip Hammond must extend pop tax to sweets UK leads the way with its fizzy drink tax - it should cover sweets too
(about 2 hours later)
In the battle between Big Soda and health campaigners, it is far from clear who is winning. Wednesday is World Obesity Day, marking yet another depressing milestone in a global epidemic where the US and the UK are bursting at the forefront. But America’s only major levy on fizzy drinks (in Chicago, affecting more than 5m people) has been dumped following a ‘Can The Tax’ campaign. In the battle between Big Soda and health campaigners, it is far from clear who is winning.
Wednesday is World Obesity Day, marking yet another depressing milestone in a global epidemic where the US and the UK are bursting at the forefront. But America’s only major levy on fizzy drinks (in Chicago, affecting more than 5 million people) has been dumped following a “Can the Tax” campaign.
However, in another country that shares Britain and America’s expanding waistlines, the Irish chancellor introduced a sugar tax on Wednesday that will add 30c (27p) to a litre of pop in the Republic.However, in another country that shares Britain and America’s expanding waistlines, the Irish chancellor introduced a sugar tax on Wednesday that will add 30c (27p) to a litre of pop in the Republic.
When Philip Hammond presents the budget on November 22, will he follow the path of Chicago or Dublin? It will come as a surprise to some that Britain is actually leading the way in Europe on taxing sugary soda drinks. George Osborne’s March 2016 Budget surprise was a new levy that will add 6p to a can of Fanta or Sprite, and 8p to a can of Coca Cola or Pepsi. In many ways the Irish tax is a me-too of Britain’s sugar tax. When Philip Hammond presents the budget on 22 November, will he follow the path of Chicago or Dublin?
It will come as a surprise to some that Britain is actually leading the way in Europe on taxing sugary soda drinks. George Osborne’s March 2016 Budget surprise was a new levy that will add 6p to a can of Fanta or Sprite, and 8p to a can of Coca-Cola or Pepsi. In many ways the Irish tax is a me-too of Britain’s sugar tax.
But the UK levy will not be introduced until April next year. Hammond said in his first budget that he will go ahead with the tax, but he is now caught between lobbyists from the drinks industry and his own party (notably Jacob Rees-Mogg) determined to reverse the tax, and health campaigners demanding it goes a lot further.But the UK levy will not be introduced until April next year. Hammond said in his first budget that he will go ahead with the tax, but he is now caught between lobbyists from the drinks industry and his own party (notably Jacob Rees-Mogg) determined to reverse the tax, and health campaigners demanding it goes a lot further.
Never underestimate the lavish amounts of cash Big Soda can throw against tax measures to reduce consumption. The Can The Tax campaign in Chicago has the appearance of a popular revolt from locals upset at higher taxes and prices, styling itself as “a group of concerned citizens, businesses, and community organisations”. But it found $3.2m to spend on TV and radio ads, with the campaign “supported by the American Beverage Association”. The ABA’s board of directors lists the chief executive of Pepsi as its chair, and a chairman of Coca-Cola as its vice chair. Never underestimate the lavish amounts of cash Big Soda can throw against tax measures to reduce consumption. The Can the Tax campaign in Chicago has the appearance of a popular revolt from locals upset at higher taxes and prices, styling itself as “a group of concerned citizens, businesses, and community organisations”.
In the UK the British Soft Drinks Association constantly reminds ministers that 340,000 jobs rely directly or indirectly (through retail outlets) on the 13bn litres of pop we swallow every year. But it found $3.2m (£2.4m) to spend on TV and radio ads, with the campaign “supported by the American Beverage Association”. The ABA’s board of directors lists the chief executive of Pepsi as its chair, and a chair of Coca-Cola as its vice-chair.
Its spokesman Gavin Partington claims that tax rises will not tackle childhood obesity, citing a hugely controversial tax in Mexico. “If you increase the price, in the short term you may see a reduction in sales,” he says. “But there is no evidence that it has a medium-to-long term impact on obesity ... [in Mexico] there are signs that sales are returning to their usual trajectory.” In the UK, the British Soft Drinks Association constantly reminds ministers that 340,000 jobs rely directly or indirectly (through retail outlets) on the 13bn litres of pop we swallow every year.
Its spokesman Gavin Partington claims that tax rises will not tackle childhood obesity, citing a hugely controversial tax in Mexico.
“If you increase the price, in the short term you may see a reduction in sales,” he said. “But there is no evidence that it has a medium-to-long term impact on obesity … [in Mexico] there are signs that sales are returning to their usual trajectory.”
Health campaigners could not disagree more. Cancer Research UK has calculated that a 20% tax on sugary drinks would prevent 3.7 million people becoming obese in the UK over the next decade.Health campaigners could not disagree more. Cancer Research UK has calculated that a 20% tax on sugary drinks would prevent 3.7 million people becoming obese in the UK over the next decade.
This is one area where there is rare popular support for taxes. The British general public know little about the ins and outs of Mexico’s tax experiment, but they do know that when it comes to cigarettes, steep taxes and advertising bans have been a slam dunk success. This is one area where there is rare popular support for taxes. The British general public know little about the ins and outs of Mexico’s tax experiment, but they do know that when it comes to cigarettes, steep taxes and advertising bans have been a slam-dunk success.
In some ways Osborne’s UK sugar tax is working before it has even begun. The April 2018 UK tax deadline is already forcing manufacturers to reformulate drinks to come in below the sugar tax threshold. Tax and regulation work.In some ways Osborne’s UK sugar tax is working before it has even begun. The April 2018 UK tax deadline is already forcing manufacturers to reformulate drinks to come in below the sugar tax threshold. Tax and regulation work.
But as charity Action on Sugar argues, it’s mad to limit the levy to fizzy drinks only – it should cover confectionery too. Margaret Thatcher became famous as the milk snatcher. Hammond should now extend the sugar levy to sweets too – even if it means he becomes the Snickers snatcher. But as charity Action on Sugar argues, it’s mad to limit the levy to fizzy drinks only – it should cover confectionery too.
Margaret Thatcher became famous as the milk snatcher. Hammond should now extend the sugar levy to sweets too – even if it means he becomes the Snickers snatcher.