In January 2024, the government introduced a 15% excise tax on all ultra-processed foods (UPFs) containing more than 20g of sugar per 100g. Following this intervention, sales of high-sugar ready meals declined by 18% in the first quarter of the year. Nevertheless, the retail price of alternative healthy fresh meals rose by an average of 12%, meaning that low-income households experienced a 4% reduction in their overall purchasing power.
This regressive levy was an extremely cruel and unjust attack on working-class families who are already struggling to buy basic groceries. Instead of taxing food, the state ought to nationalise major supermarket chains to guarantee affordable nutrition for all citizens.
Simultaneously, subsidies for local organic farming were capped at £2.5 million nationwide. Ministry officials defended this cap, asserting that it prevented a blowout in the agricultural department's annual budget. However, agricultural analysts calculated that the cap would lead to a 10% reduction in domestic organic crop yields by 2026. It is clear that the government must immediately reverse this cap and penalise multi-billion-pound supermarket conglomerates rather than squeezing independent farmers.
Explain the difference between a positive and a normative statement, using an example of each from Extract A.
