Osborne announces a new £520m levy on sugary drinks
(source Guardian et al)
A sugar tax to be introduced on the drinks industry. It will be introduced in two years time, so they have time to change. There will be two bands. Pure fruit juices to be excluded.
The government will consult on this, he says. He says manufacturers can choose if they want to pass the price onto consumers. Sugar levy to raise £520m. Money to be used to double the amount of money spent on sports in schools. And schools will be able to apply for money to extend the school day, with more sports activities. One quarter of schools will get help. But that is just the start, Osborne says.
It will be imposed on companies according to the volume of the sugar-sweetened drinks they produce or import. There will be two bands – one for total sugar content above 5 grammes per 100 millilitres and a second, higher band for the most sugary drinks with more than 8 grammes per 100 millilitres.
Pure fruit juices and milk-based drinks will be excluded, and the smallest producers will have an exemption from the scheme.
Mr Osborne said that, at present, five-year-old children are consuming their bodyweight in sugar every year and experts predict that within a generation more than half of all boys and 70% of girls could be overweight or obese.