Cameron has previously been against introducing a ‘sugar tax’, but speaking at a press conference in Hungary that despite not wanting to add taxes the obesity problem has to be recognised.
He told reporters: “I don't really want to put new taxes on anything but we do have to recognise that we face potentially in Britain something of an obesity crisis when we look at the effect of obesity not just on diabetes but the effect on heart disease, potentially on cancer, when we look at the costs on the NHS, the life-shortening potential of these problems.
"We do need to have a fully-worked-up programme to deal with this problem and address these issues in Britain and we will be making announcements later in the year.”
The ‘sugar tax’ has been the subject of several high profile campaigns, most notably from chef Jamie Oliver who has already introduced a levy in his own restaurants. A Public Health England report published in October 2015 recommended a tax of between 10 and 20% on high sugar products as part of a ‘meaningful’ reduction in sugar consumption.
“Of course it would be far better if we could make progress on all these issues without having to resort to taxes. That would be my intention. But what matters is that we do make progress.
"We need to look at this in the same way in the past we have looked at the dangers of smoking to health and other health-related issues.
"So that is my commitment: we need a fully-worked up strategy, we shouldn't be in the business of ruling things out but obviously putting extra taxes on things is not something I would aim to do, it is something I would rather avoid."
Ben Reynolds, from food and farming charity Sustain who are leading the Sugary Drinks Duty campaign, responded: “We are really heartened that Cameron is putting common sense first and ensuring all options to tackle childhood obesity on the table. A sugary drinks tax is arguably the best evidenced option being considered, with many examples globally showing how successful it could be in tackling diet related disease.
"As well as improving lives, and saving taxpayers money in the long run, this could have an even bigger impact if the money raised is spent on improving children’s health and the environment they grow up in, particularly those from the most deprived backgrounds.”
The Green Party has also issued a renewed call for a ‘sugar tax’ to be introduced and urged Cameron to stop delaying his decision.
Natalie Bennett, Green Party leader, said: “Once again the government has failed to act to curb the excesses of big multinational companies that are spending big on advertising and promotion of products that are actively harmful.
"Experts tell us that a tax on sugary drinks could have a significant positive impact on the nation's health - particularly on children's health.
“Our obesity crisis needs government action from many angles - a ban on advertising junk food to children, a sugary drinks tax, transport policy that focuses on walking, cycling and affordable, reliable, convenient public transport.”