Sugar tax advice changes

Treasury told ministers a tax on soft drinks was one of the most promising options to cut high obesity levels. However, later advice by officials said there was still some doubt about a tax and it warned that the measure could simply shift consumers on to other unhealthy alternatives.

The Government was criticised for not including a tax on sugary drinks as part of its major anti-obesity plan unveiled last month. Health Minister Jonathan Coleman said there was no conclusive evidence for a tax on soft drinks.

The Treasury has now released the advice it gave to ministers on possible antiobesity measures.

In February last year, officials said a sugarsweetened beverage tax would lead to a fall in consumption and health benefits. The proposed policy would hit poorer families harder, but some studies said this would be “progressive in terms of health outcomes” because poorer groups had higher rates of obesity.

In December last year, Treasury passed the findings on to Finance Minister Bill English.

Officials said a tax on soft drinks was among “the most promising regulatory approaches to explore further”.

A report in February concluded that there was still “great contention” over health taxes and said they needed to be considered carefully.