Government issues consultation on sugar tax
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- Published: Thursday, 18 August 2016 08:58
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A new UK-wide Soft Drinks Industry Levy will apply to the production and importation of soft drinks containing added sugar. The government announced as part of Budget 2016 that they would introduce the new levy from April 2018. They have issued a consultation which sets out proposals for how the levy will be designed and implemented.
Jane Ellison, Financial Secretary to the Treasury and former Minister for Public Health, said: “The soft drinks industry levy is an important step forward in the fight to halt our obesity crisis and create a Britain fit for the future.” She added: “Some companies have started to reduce the sugar content of their drinks, move consumers towards diet and sugar-free variants, and reduce portion sizes for high sugar beverages. We welcome these actions, but it is clear that we need to go further and faster.
“The new Soft Drinks Industry Levy, announced at Budget 2016, creates strong incentives for further soft drinks reformulation. The levy is designed so that, by taking reasonable steps to reduce sugar content, UK producers and importers of soft drinks can pay less or escape the charge altogether. The levy is expected to raise £520 million in the first year, with revenues falling over time as producers and consumers shift their behaviour.
The drinks industry has undertaken to reduce by 20% the amount of sugar in products such as cereals, desserts, yoghurts and sweets. The money accrued by the levy on sugary drinks will go to fund breakfast clubs and sport. Schools will be asked to give pupils an extra 30 minutes a day of physical activity, and parents and carers will be encouraged to get their children moving for a further 30 minutes.
The consultation runs until 13 October 2016 and can be found at: http://tinyurl.com/jcujbrl
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