Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Billionaire IWG founder Mark Dixon steps down as chief executive

      Mark Dixon, CEO of IWG, in a business setting discussing flexible workspace solutions and future industry trends.

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      2026 World Cup: How England went from misery to magnet for blue chip brands

      Business professionals discussing strategy in a modern office with charts and graphs on a digital display in the background

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Old Pulteney releases 50-year-old whisky for 200th anniversary

      Old Pulteney 50-Year-Old single malt Scotch whisky bottle with elegant packaging on display, highlighting luxury and craft...

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Tuesday 11 October 2011 7:22 pm  |  Updated:  Thursday 30 May 2019 8:42 pm

Subsidising the fat is no way to slim the UK

By: KCS-content

Add as a preferred source on Google

DAVID Cameron is worried about how much fat people are costing his government. “Look at America, how bad things have got there” he implored a Five News reporter only last week. “What happens if we don’t do anything? Yes, that should be a wake-up call.”

What he thinks we should do – or, at least, not rule out doing – is raise tax on all fattening food in the UK. The Danish now tax food that contains more than 2.3 per cent saturated fat. Cameron hopes that something similar over here might help to reduce obesity in Britain and the terrible cost it imposes on the NHS.

To see where Cameron has gone wrong, start by asking how many people should be fat. The answer is not none.

Being fat is costly. It can make you less attractive, less energetic and more likely to become ill. You have to pay for all the food too. But these costs are incurred for the sake of a benefit: namely, the pleasure of eating. If you value that pleasure higher than you disvalue the costs, not only will you be fat, you will be better off fat. Provided being fat is neither taxed nor subsidised, so long as no one is forced to be thin or encouraged to pig out, the right number of fat people in the world is the actual number.

Alas, obesity is currently subsidised in Britain. Because Cameron’s beloved NHS does not charge patients for their medical care, obese people do not pay the full cost of their choice. The cost of their treatment is spread across all taxpayers, fat and thin alike. Indeed, the cost is disproportionately imposed on the thin, because the rich tend to be thinner than the poor and also pay more tax.

You might, especially if you are on the slimmer side, think this justifies Cameron’s proposed tax on fatty food; it is an attempt to claw back the subsidy provided by the NHS. In fact, it simply repeats the original mistake, because thin people also eat fatty food. This way of clawing back the NHS obesity subsidy continues to spread the cost across the entire population, with everyone who enjoys ice cream or pizza ending up footing the bill, only about 20 per cent of whom are actually obese. Indeed, a thin athlete who loads up her plate as part of a training regime could end up paying more than a fat couch-potato. Cameron’s proposal thus continues to subsidise obesity.

In a Big Society spirit of giving, I offer the Prime Minister two alternative approaches. The first is to tax obesity directly. It is not hard to tell who is fat. Doctors, employers, teachers and public-spirited neighbours could dob fat people in to the tax authorities, who would then add an obesity surcharge to their tax bills.

Or, if Cameron would prefer to avoid such unpleasantness, he could change the funding of the NHS. He could shift to an insurance-based system in which, as demanded by his socialist principles, the government still pays everyone’s premiums out of tax revenues – but only up to the cost of a policy for a slim person.

In this new system, the fat would have to bear the extra cost themselves, and those who felt the cost outweighed the benefits of indulgence would slim down. Then Cameron could avoid the absurdity of taxing butter, safe in the knowledge that everyone who is fat is adding to the sum total of happiness on Earth.

Jamie Whyte works for the consultancy Oliver Wyman. He is a senior fellow of the Cobden Centre.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

Related Topics

  • NULL

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • London Tech Week sums up everything wrong with UK tech

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • Innocent smoothie boss bananas for EU red tape reset

    Retail
    Innocent Drinks logo featuring a simple, playful design with bold colors, symbolizing the brands fresh, healthy beverage e...
  • Never forget the undeniable moral case for capitalism

    Economics
    Canary Wharf skyline featuring modern high-rise buildings under a clear sky, highlighting Londons financial district.
  • The Bath House banya: Contrast therapy in Belgravia

    Life&Style
    Historic bath house exterior with ornate architecture, showcasing vintage design elements and a serene garden setting.
  • Supermarket price caps? Rachel Reeves is truly panicking

    Opinion
    Rachel Reeves discussing economic policies in a supermarket aisle with diverse products on shelves in the background.
  • ‘Manchesterism’ is a myth and you can’t trust Andy Burnham

    Opinion
    Andy Burnham speaking at a conference, addressing key issues and engaging with an attentive audience in a business setting.
  • The Suffolk in Aldeburgh: Restaurant with rooms is a super seaside City break

    Life&Style
    Exterior view of The Suffolk Restaurant showcasing its welcoming entrance and elegant signage in a bustling neighborhood s...
  • Tom Aikens finds his Muse

    Life&Style
    High-resolution image of a bustling city street with diverse pedestrians and vibrant storefronts under a clear blue sky
  • Bunq: Revolut rival eyeing up UK banking licence bid

    Fintech
    Ali BU21 engaging in business discussion, highlighting strategic insights amidst dynamic corporate environment
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited