Lib Dems propose juice tax cuts

3.43.47pm GMT Sat 8th Mar 2008

Cut tax on fruit drinks

"VAT on fruit juice and smoothies should be cut from 17.5% to 5% to help encourage healthy diets, the Lib Dem Treasury Chancellor, Vince Cable, told the party's spring conference in Liverpool. The cut in duty would be paid for by a rise in tax on some alcoholic drinks. "Such a tax could raise an estimated £200m", he said.

Dr Cable told the BBC's Today programme: "As a politician I don't want to tell people how to conduct their diets. All we want to do is to lift the very heavy burden from people who want to live a healthy lifestyle. A lot of people want good drinks that can reinforce their lifestyle and their fitness. We should encourage people, not put people off who can't afford it."

Health groups have welcomed the Liberal Democrats' proposal. A spokeswoman for the British Nutrition Foundation said: "We welcome anything that reduces the cost of healthy food so that people can improve their nutrition. An estimated 70% of the population do not consume the recommended five portions of fruit and vegetable per day.