Increase VAT on unhealthy food to tackle obesity, say MPS

 Unhealthy food should be subject to higher rates of VAT to tackle Britain’s obesity crisis, MPS have proposed.

The health select committee, chaired by Dr Sarah Wollaston, called for the measure and for the sugar tax to be extended to chocolate and puddings, with a ban on junk food advertisements before the 9pm watershed, and curbs on two-for-one deals.

The MPS, discussing their updated childhood obesity strategy, which is expected to be published shortly, also urged ministers to introduce restrictions so that cartoon characters cannot be used to promote junk food.

In the UK, most food is VAT zero-rated, but many types of junk food attract the standard rate of 20 per cent.

Martin O’connell, of the Institute of Fiscal Studies, told MPS the current system of VAT was “incoherent” with no logic behind rules which mean there is no tax on cakes, but there is on biscuits.

Jack Winkler, professor of nutrition policy at London Metropolitan University, said: “The next chapter in the childhood obesity plan should make clear an explicit objective not just to make the healthy choice the easier choice, but to make the healthy choice the cheaper choice.”

Health officials set targets for manufacturers to reduce products’ sugar content, but the plans have so far failed.