'Sugar Tax' - what is it and why?

As of today (April 6th) the so-called 'sugar tax' has been implemented in the UK.

What is it?

Soft drinks that have a sugar content of 5g per 100ml will be taxed 18p per litre, whilst drinks with 8g of sugar or more per 100ml will be taxed by 24p per litre. These taxes are aimed at manufacturers in order to encourage them to reformulate and reduce the sugar content of drinks. However, if manufacturers don't reformulate then it is hoped that the price increases will be passed onto consumers instead, who will then 'theoretically' choose alternative, non-taxed, healthier, lower price drinks.

Why is it being implemented?

It’s hoped that the combination of reformulation and price increases will help to reduce population wide sugar intake- important as research suggests that sugary drinks are associated with weight gain and diabetes, as well as with dental issues. Of course, there is no silver bullet to solving population health issues such as overweight, diabetes and dental issues, and thus implementing a tax is not going to solve problems. However, taxes can help, and can play a part in contributing to beneficial changes.

Manufacturers

The tax was designed so that manufacturers can avoid the tax by reformulating their products and lowering sugar levels. It is already clear that the tax has had a positive effect here! When the tax was announced it was suggested that a 1.75 litre bottle of cola bought from a supermarket could increase in price by about 25%, however, already, over 50% of soft drinks manufacturers (including retailer own-brands such as Tesco and Morrisons) have already reduced sugar levels- so such large price increases may not be seen. Irn-Bru and Lucozade did have sugar levels over 10g/100ml but following reformulation both drinks are now under 5g/100ml.

Revenue

When the sugar tax was announced, the treasury noted that the tax revenue will help to fund programmes designed to reduce obesity such as school sport. We will have to wait and see how much revenue is actually gathered from this tax- in order to see how effective it is at helping with sports programs.

Purchase changes

Changing purchasing and dietary habits was not the main aim of the tax. But after similar taxes were brought in elsewhere, such as Mexico, purchases of taxed drinks fell by almost 8% in the following two years. People also bought more untaxed drinks such as water. Although this sounds like the tax worked to encourage purchase changes, it may have been the result of another reason- such as raised awareness of the impacts of sugar. When we evaluate the UK sugar tax it will be important to consider other reasons why purchases may have changed.

Is it fair?

It has been argued that the tax affects people who are poor more than the rich- which, people have said makes it regressive and unfair. But because lower socioeconomic groups are more affected by overweight, diabetes and dental issues, it has also been argued that the tax can therefore help these groups most. However- we will have to wait and see if this is the case in the UK.

Other alternatives?

There may be alternative measures to encourage people to consume less sugar- but the evidence for the success of alternative measures is lacking. I think it may be worth just seeing what the tax can do- whilst also continuing to encourage the population to make healthier dietary and activity choices. We need to continue focusing on making the healthier choice the easiest choice.

Talking about the tax

Even if you don't agree with the tax itself, the fact that we are talking about the detrimental health effects of consuming too much sugar is a positive benefit. Chatting can help norms to change. Chatting about sugar, and helping people to understand the negative effects of sugar can enable people to take charge of their health- and understand that consuming a lot of sugary drinks is not normal at all, and therefore should be avoided.