Danone UK boss urges government to raise fat, sugar and salt taxes
The UK boss of a major food firm has called on ministers to link VAT rates to the “health credentials” of products containing fat, salt and sugar, in the first example of such a demand coming from business rather than government.
James Mayer, president of Danone UK & Ireland, which sells the Actimel yoghurt drink brand, said some food brands lacked “enough appetite to change” amid an obesity crisis.
He told the Observer: “The UK food industry’s efforts [to make food healthier] have not moved fast enough. We’ve reached a point where meaningful intervention from the government is a necessary course of action.”
Mayer stressed he did not want to see the cost of food shopping increasing for the public but urged ministers to set “clear parameters for industry and consumers” on healthy products.
He added: “This is likely to involve moving faster on food and beverage data sharing and transparency, finally introducing restrictions on advertising of products [high in fat, sugar or salt] and looking at how VAT rates can be aligned to the health credentials of products.”
Financial burden
Most groceries are VAT exempt but Danone, which says 90 per cent of its products are not high in saturated fat, sugar or salt (HFSS), suggested the tax could be applied to more such items.
It comes after the 2021 England Health Survey found 64 per cent of adults are overweight or obese – with former food advisor Henry Dimbleby recently resigning claiming ministers had failed to regulate the industry, including delaying a ban on pre-9pm TV ads for sugary and fatty foods.
Rishi Sunak last week described anti-obesity drugs – like Ozempic – as a potential “game changer”.
New rules around buy-one-get-one-free deals will be restricted from this autumn.
Action on Sugar campaign chairman Professor Graham MacGregor said the intervention was “remarkable”, adding: “We live in an environment where it’s very difficult not to be obese, and the government has got to control the food industry.”
But a Food and Drink Federation spokesperson said: “An additional tax on manufacturers will not help them to reformulate. It will only add to the financial burden they already face.”
Sugar-reduction programme
A Department of Health and Social Care spokesperson (DHSC) said: “We have taken firm action to tackle unhealthy foods, including by restricting the location of foods high in fat, sugar or salt, which will bring health benefits of over £57bn and save the NHS £4bn.
“Our sugar-reduction programme has delivered dramatic reductions in the amount of sugar in foods eaten by children – including a 14.9 per cent decrease in the sugar content of breakfast cereals and a 13.5 per cent reduction in the sugar content of yogurts and fromage frais.
“We will continue to work closely with industry to make it easier for people to make healthier choices and support people already living with obesity to lose weight.”