THE Scottish Licensed Trade Association is among the growing number of trade organisations and businesses which are opposing the UK Government’s proposals for a sugar tax (Soft Drinks Industry Levy).
Food and drink manufacturers, along with trade groups including the SLTA, the British Beer & Pub Association (BBPA), Scottish Wholesale Association and Scottish Grocers’ Federation, have warned there is little evidence that the introduction of a levy on food and drink with a high sugar content would help tackle obesity.
Various campaigning groups have been formed to oppose the tax and put pressure on the UK Government to rethink its proposals – targeted predominately at soft drinks – and work with the industry to explore other options.
Groups include ‘Face the Facts, Can the Tax’ and the ‘Business Alliance against Soft Drinks Tax’ which is campaigning under The Last Straw.
Many leading manufacturers have been already reduced the amount of sugar they use and reformulated products while there are also many more low-sugar and sugar-free alternatives now available, offering consumers choice.
The launch of the ‘Face the Facts, Can the Tax’ campaign followed the publication of a report from Oxford Economics which predicted a loss of 4000 jobs across the UK and a decline of £132 million in economic output if the tax goes ahead as planned in 2018.
SLTA chief executive Paul Waterson has previously described the sugar tax as a “discriminatory, unfair government initiative”, and yet another unwarranted tax that will put further pressure on declining profits within the licensed trade while doing nothing to alleviate health concerns.
Last month, the British Beer & Pub Association published a response to the UK Government’s Soft Drinks Industry Levy consultation – which ran from August to October – in which it highlights the impact the tax could have on pubs and the brewers which contract-package soft drinks.
The SLTA supports the BBPA’s view that there is insufficient evidence that a tax is an effective measure to tackle childhood obesity. The SLTA also agrees that if the policy is introduced it should be fully focused on drinks consumed by children and, as far as possible, exclude products consumed by adults.
Key points proposed in the report are:
- Removing non-alcoholic beers from the levy
- A relief system for soft drink products that are used to make alcoholic drinks in the hospitality sector (post-mix alcoholic drinks)
- Adult soft drinks to also be considered for exemptions