Britain's sugar tax is loathed by opponents of the 'nanny state' (Image: PA)
Britain should axe the “sugar tax” and reject the nanny state to become the “freest country in Europe”, the Institute of Economic Affairs has urged.
The influential think tank wants the Government to scrap a levy designed to push soft drinks manufacturers to cut sugar content.
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The IEA claims it has failed to reduce obesity and has been bad for the products.
Chris Snowdon, head of lifestyle economics at the think tank, urged the British state to step back.
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He said: “Sugar taxes have never reduced obesity anywhere in the world and the UK’s sugar tax clearly did not work. All it has done is take ￡300million a year out of people’s pockets and ruined some of the nation’s favourite drinks.
“Dismantling Britain’s nanny state and making the UK the freest country in Europe should begin with abolishing sin taxes like this.”
The think tank is calling for the removal of “all restrictions on when and where food can be advertised”, blasting these as “economically damaging” and “anti-competitive”.
However, the Government insists that the levy is delivering results.
A spokesman said: “The Soft Drinks Industry Levy is globally recognised as a transformative health tax intervention expected to raise ￡350million next year, has helped bring down the average sugar content of soft drinks in scope by 46 per cent between 2015 and 2020 and has been linked to a reduction in obesity in girls aged 10-11.”
It also argues the levy is linked to 5,500 fewer children needing tooth extractions.
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The Government plans to increase the levy annually over the next five years and has launched a review with the goal to “further drive down the sugar content in soft drinks”.
It will consider whether to scrap the “current exemptions for milk-based and milk substitute drinks” so “pre-packaged milkshakes and milky coffee drinks” would face the levy.
At present, the tax is charged at 24p per litre for drinks with 8g or more sugar per 100ml.