The amount of tax to be raised via the new soft drinks industry levy, in force from today, has been slashed, with the government claiming the threat of the ‘sugar tax’ has resulted in over 50% of manufacturers reformulating their products in order to avoid the charge, which is now predicted to bring in £240m rather than £520m in its first year
Companies are required to pay 24p per litre of drink if it contains 8 grams of sugar per 100 millilitres, or 18p per litre of drink if it contains between 5 – 8 grams of sugar per 100 millilitres.
This money will go towards doubling the primary sports premium, the creation of a healthy pupils capital fund to help schools upgrade their sports facilities, and give children access to top quality PE equipment.
It will also give a funding boost for healthy school breakfast clubs, and the government says even if revenue from the levy declines, funding for schools and children will stay the same.
Robert Jenrick, exchequer secretary to the Treasury, said: ‘The soft drinks levy is one part of our plan to tackle childhood obesity.
‘In the time between announcing this policy and it taking effect today, more than half of all soft drinks have been reformulated to lower the sugar content, including many of the best known soft drinks. We hope that will continue in the months and years to come.’
Public health minister Steve Brine warned teenagers are consuming ‘nearly a bathtub of sugary drinks’ each year on average. In England alone, a third of children are obese or overweight when they leave primary school, and evidence shows that 80% will go on to be obese adults.
A number of well-known brands, including Irn-Bru, Lucozade and others have changed the formula for their drinks ranges.
Guidance Check if your drink is liable for the Soft Drinks Industry Levy is here.
Guidance Register a warehouse for the Soft Drinks Industry Levy is here.
Register for the Soft Drinks Industry Levy is here.
List of information about soft drinks levy is here.
Report by Pat Sweet
