Our thinking

No sugar-coated solutions

20 September, 2024

In the past week, both the Darzi and IPPR reports have sounded the alarm on the state of the NHS, making it clear that bold action is needed to stem the rising tide of ill health in the UK. A key focus? The food industry. The message is clear: innovation and cutting-edge solutions are essential to foster healthier, more sustainable eating habits. One suggested approach is to increase taxes and regulations on sugar, alcohol, and other unhealthy foods, with the goal of not only improving public health but potentially saving the NHS a hefty £18 billion over the next decade.

The IPPR report goes beyond taxing “health polluters” like unhealthy food, alcohol, and tobacco. It also advocates for clearer labelling on foods high in fat, sugar and salt. Countries such as Canada and Chile have already adopted front-of-pack warning labels, requiring products that fail to meet health standards to display prominent, sometimes unflattering, labels.

The Labour Party, among others, has expressed a very valid concern over raising taxes that could drive up shopping costs during a cost-of-living crisis. But – perhaps somewhat counter-intuitively, this doesn’t have to be the outcome from higher taxes. Evidence suggests that when the sugar tax came into play it successfully pushed soft drink companies to reformulate their recipes to be lower in sugar – thereby achieving the health gains at no extra cost to the consumer. Our friends at Suntory Food and Beverages were recognised leaders in this back in 2017. Front-of-pack labels have also proven effective in motivating businesses to improve the nutritional quality of their products.

So while regulation can be a blunt tool for creating change, given the scale of the problem it is one that is needed. Particularly if it becomes a powerful driver of innovation that sees companies delivering what consumers both want and need.

By Meg Seckel