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By Betting And Gaming Council

Sugar tax will ‘seriously damage’ the health of UK’s hospitality industry

The Association of Licensed Multiple Retailers | The Association of Licensed Multiple Retailers

3 min read Partner content

A sugar tax at this stage “will seriously damage the profitability of venues and could be make or break for some businesses,” warns ALMR CEO Kate Nicholls. 

Today we are likely to find ourselves another step closer to a sugar tax designed to benefit the health of the nation but could have a negative effect on the health of our hospitality industry.

Pubs, bars and restaurant businesses recognise that an imbalanced diet has a serious affect on our health and wellbeing. That is why the eating and drinking-out sector has been hard at work over recent years to provide customers with a greater choice of healthy options and have looked to increase transparency to ensure that customers are fully informed.

Licensed operators have increased the sophistication of their alcohol labelling to provide customers with information on alcohol units and calorific content and to make an informed choice. We have also seen a rise in the kitchen areas and the proliferation of authentic ingredients from local suppliers. Not just in an effort to source the best ingredients, but in an effort to provide customers with peace of mind as to the contents of their meals.

We have also seen increased emphasis on alcohol-free options and the recent renaissance in high street dining prompted by the explosion in casual dining means that there is greater choice than ever before for those seeking healthy food. Healthy, exciting food, freshly prepared from high quality ingredients with no hidden sugar are the order of the day and readily available across high street venues. Make no mistake this is a sector that understands the worries of its consumers, and of Government, and is working hard to provide its customers with the best.

As a sector, we have made real progress in addressing parents’ concerns and in helping all consumers to make informed decisions about what they eat.  These businesses are not only driving growth but helping to reinforce positive attitudes towards healthy eating.

This is also a sector that believes that a tax on sugary drinks is, on its own, unlikely to address the Government’s concerns regarding dietary intake and obesity.

This additional cost will be felt by pubs and bars, many of whom have worked very hard over recent years to provide their customers with healthy options. These businesses are excellent employers and drivers of growth in local economies as well as being valuable cultural and social assets.

The United Kingdom’s pubs are known across the world and have become iconic emblems of our isles. Our nightclubs have fostered some of the greatest musical talent in the world and continue to identify and support some of the best young talent in the country.

These are also businesses facing tightening margins, hamstrung by restrictive local planning laws and struggling against an exorbitant business rates regime. An additional cost in the form of a sugar tax at this stage will seriously damage the profitability of venues and could be make or break for some businesses. This is not an industry averse to change or stubbornly refusing to address issues relating to health. This is a collection of hardworking businesses asking the Government to do more than ask it to shoulder an additional burden. 

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