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[Correspondence] The Institute of Fiscal Studies’ verdict on a sugary drink tax

On Feb 8, 2016, the influential Institute for Fiscal Studies (IFS) released its annual Green Budget—a report aimed at informing the government’s March budget.1 For the first time, their budget report discusses a sugary drink tax and concludes that “the efficacy of [a sugary drink tax] will depend on what products [consumers] switch to and how firms change their prices”. The IFS warns that a sugary drink tax could lead to consumers switching to chocolate or that prices of diet drinks could rise thereby weakening the tax’s impact on health.

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