A tax on unhealthy foods could help the nation's finances as well as its waistline.
The idea of a Fat Tax on unhealthy foods is back in the press this week, with a new official report suggesting it would make a real difference to both the physical and financial health of the UK. But just how feasible an idea is it?
At this early juncture I should declare an interest in this. I am what might diplomatically be termed a ‘larger man’. Don’t get me wrong, I’m not exactly Rik Waller, but as my Wii Fit so delights in telling me, I could do with losing a few pounds.
So the concept of a fat tax intrigues me greatly.
The porky problem
As we are constantly reminded, whether by the Government, press or Jamie Oliver, there is something of an obesity problem in the UK.
Indeed, as many as a quarter of Brits are officially classed as obese, putting us top of the European Fat League. In fact, two-thirds of all men in the UK are classed as overweight, a pretty scary statistic.
A problem for all of us
At this stage, you may be wondering, so what? You may eat healthy food, look after yourself, and be wondering what difference it makes to you if we are a nation of fatties.
However, the scale of our obesity problem means it’s doing far more than simply upsetting the sensibilities of those poor skinny people having to look at us bigger Brits – it’s costing the nation some serious cash in paying for the health treatment of problems brought on by a poor diet.
Indeed, a couple of years ago the Department of Health suggested that unless our obesity problem is tackled, it could cost the NHS £6.3bn by 2015. That’s an awful lot of our tax money, that could instead be spent on things like schools or police – or even the odd tax cut.
Obesity is not just a problem for those carrying a few pounds. It’s hitting the wallets of all of us!
Fat tax, part of a healthy balanced diet
New research in the medical journal, The Lancet, looked at possible ways to combat obesity, and the health problems that tend to follow, across seven countries, one of which was the UK.
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And the study found that rather than shelling out on treating heart problems and cancer that results from poor diet, a more economically sensible model would combine the taxing of unhealthy foods, subsidising healthy foods, restricting food advertising and improving the information on food labels.
How it would work
Currently no tax is levied on food most food. Crisps, chocolate-covered biscuits - but, oddly, not cakes - do attract VAT, but that is all. However, the suggestion from various outfits, from the National Obesity Forum to the Food Standards Agency, is for VAT to be extended to cover all foods with a high fat content.
The idea works along similar lines to the tax charged on cigarettes, which various studies have shown has been effective in reducing the use of them. If fatty foods are more expensive than things like fruit and vegetables, the theory is that all of us tubsters are going to ditch the Wispas and Kit Kats and go mad for melons and apples.
Foolproof, right?
It’s not just us
It’s not just the authorities in the UK that have made the case for a Fat Tax. There has been much talk in recent months of President Obama considering a tax on sugary drinks in the United States.
And back in July, a German MP suggested a tax on those who knowingly indulge in an unhealthy diet would help reduce the billions a year the German government pays towards health treatment for obese citizens each year.
Indeed, the German Teachers Association has suggested weighing children in class every day, reporting the heaviest to social services who could then send the children to clinics!
Would it work?
The key question of course is whether such a tax would actually make a difference to the nation’s waistlines. And on that point I’m a little unconvinced.
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First of all, how would the Government decide which foods the tax would apply to, and which would be exempt? It’s too easy to just say stick VAT on all fatty foods, as fat is actually an important part of a healthy diet (in smaller doses obviously!). It’s not particularly fair to charge an extra tax on something that we should all have in our diet, no matter our size.
And given that the Government has put outfits like McDonalds and Pepsi in prominent positions in its new policy networks for writing up plans on dealing with obesity, something tells me that the implementation of a Fat Tax would be hit and miss at best.
Tax a deterrent?
Besides, is tax really such a big deterrent to unhealthy habits?
Year after year the tax charged on alcohol goes up, and yet we are still a nation of drinkers, town centres on a Friday night dominated by the drunk and disorderly. In order to really make an impact on our habits, the tax would have to be punitive enough that buying fatty foods is simply too expensive, and I’m not sure that will be an easy sell politically given the ongoing financial difficulties we all face.
Such a tax might also cause the price of other food stuffs to rise as well, as noted by a report on the feasibility of a Fat Tax by the Institute of Fiscal Studies. That would really defeat the whole purpose – the idea should be that healthy foods become a more financially attractive option, not even more expensive!
And then we come to the Nanny State argument. Is it the role of the Government to tell us what to eat? I’ve no doubt many of you would object vehemently to Government intervention in the way you live your life.
However, for all the objections, something clearly has to be done. It is costing all of us far too much to cover the costs of the UK’s obesity epidemic. A Fat Tax is far from perfect, and alone will not do much to improve the situation. However, combined with education programmes and an improvement in food labelling so that we are all very clear on exactly what we are eating, it has to be worth a try... right?
Or maybe you disagree? If so, please let me know your thoughts using the comments box below!