Ministers considering U-turn on sugar tax as evidence suggests it would have strong impact on UK's obesity crisis

David Cameron is considering a U-turn on the sugar tax, it has been reported after a government-ordered report found that a levy on sugary drinks would combat Britain’s soaring obesity rates.

It comes just weeks after the Prime Minister’s spokeswoman said: "The Prime Minister thinks there are more effective ways of tackling this issue than putting a tax on sugar."

Senior government sources told The Times that Whitehall officials had been struck by evidence pointing to the effectiveness and popularity of increasing the price of fizzy drinks.

The Government’s strategy into childhood obesity, which was scheduled to be published in December, will be published next month.

One of its authors, Dr Alison Tedstone, revealed in October that the contents of the report advised Jeremy Hunt, the Health Secretary, that a sugar tax will help cut childhood obesity and also suggested that crackdowns on price promotions and advertising of junk food to children should also form part of a radical plan to tackle the UK’s mounting obesity problem.

The mood within Government to the idea of introducing a levy on sugary drinks is changing, a Whitehall source told The Times.

“We want to learn the lessons from examples such as the sugary drinks tax in Mexico," the source said. "This does not mean a tax on sugar – your back of Tate & Lyle isn’t about to become more expensive. And there are still lots of arguments against. But we have not ruled anything out and no decisions have been made.”

It comes as new figures revealed that more than four million people in the UK are diabetic, while two thirds of British adults weigh too much.

Obesity costs Britain £6bn a year and a diabetes a further £10bn.

The campaign to introduce a sugar tax gained momentum towards the end of last year, with London Mayor Boris Johnson saying he was "seroiusly considering" introducing the measure for the capital, while former health minister and GP Dan Poulter told The Independent that the case was "increasingly compelling".

MPs on the Health Select Committee called for bold and urgent action on childhood obesity and suggested a 20 per cent tax on sugary drinks could raise £1bn to spend on tackling the problem.

The committee’s chair, Tory MP Sarah Wollaston, said: “A full package of bold measures is required and should be implemented as soon as possible.”

And celebrity chef Jamie Oliver called on Mr Cameron to be “brave” and introduce a levy.

However, there remain reservations about the impact a sugar tax would have in increasing the cost for the poorest households and this is thought to be the Prime Minister’s main objection to introducing the measure.