The UK’s first ever sugar tax comes into force today. Read the facts below to discover how it affects you.
What is the Sugar Tax?
The Soft Drinks Industry Levy, nicknamed the ‘Sugar Tax’, was announced by the Chancellor at the 2016 budget. The two tiered levy will apply to the producers and importers of soft drinks containing high amounts of added sugar. This is expected to bring the Treasury an extra £240m.
Why is it happening?
The Government’s objective is to combat escalating rates of obesity and type 2 diabetes, especially amongst children.
In 2015, a study undertaken by the University of Cambridge highlighted why a sugar tax would be beneficial to the British public. Their researchers discovered that 8,000 cases of type 2 diabetes a year were linked to sugary drinks consumption.
It has been said that the money raised by the soft drinks levy will be spent on increased funding for sport in primary schools.
Who’s affected?
Major suppliers such as Britvic, Coca-Cola, Fever-Tree, Fentimans and Red Bull are most affected by the levy. However, some big name brands have slashed their sugar content ahead of the introduction. It is now estimated that more than 40% of all drinks that would have otherwise been affected have been reformulated with less sugar. For example, IRN-BRU has decreased its sugar content by approximately 50% ahead of the levy. The amount of sugar per 100ml will reduce from 10.3g to 4.7g.
Drinks that aren’t liable for the levy are: 75% milk based drinks, soya/almond milk, de-alcoholised beer or wine, fruit juice or vegetable juice (no added sugar), liquid drink flavouring, and infant formula.
How will it affect me?
The simplest response to the sugar tax is for drinks companies to pass on price changes to their customers. But they could choose to change prices by more or less than the tax.
Approximately just over 20% of our supplier’s soft drinks range has been affected by the levy. Therefore Kent Hospitality outlets (Mungo’s, Dolche Vita, Origins, etc.) will be raising the price of the following drinks by £0.10 to accommodate this:
- 7 Up
- Cherry Coke
- Coca Cola
- Pepsi
- Red Bull
For more information visit: https://www.gov.uk/guidance/check-if-your-drink-is-liable-for-the-soft-drinks-industry-levy