Soft drinks tax threatens 4,000 jobs

A new report reveals that the proposed UK soft drinks tax will barely reduce calorie intake, but will risk thousands of jobs and millions of pounds of investment.

Oxford Economics predicts that the tax will lead to a reduction of just five calories per day – the equivalent of one bite of an apple – but will risk more than 4,000 jobs across the UK.

In addition, it finds that the impact of the tax will be felt across the wider economy, particularly in the hospitality sector and among smaller retailers. Lower sales will reduce the industry’s contribution to the economy by £132 million.

Gavin Partington, BSDA director general, says, “Post brexit, securing investment and jobs is more important than ever. This research shows the soft drinks tax is not only ineffective in fighting obesity, but will come at a significant price for the economy, costing thousands of jobs.

“As an industry we recognise that obesity must be tackled, which is why we have invested heavily in reformulating drinks. Since 2012 this has led to a 16% reduction in sugar intake from soft drinks. The tax is therefore unnecessary and harmful to our economy.”

Nick Stewart, senior economist at Oxford Economics, adds, “Early indications are that the soft drinks tax will lead to over 4,000 job losses across the UK. The impact will be felt across the wider economy, predominantly in hospitality and smaller retailers. These are significant losses considering we estimate the tax will only lead to a reduction of just five calories per person, per day.”