Sector News

Planned UK sugar tax will collect £245 less than expected – OBR

November 22, 2017
Food & Drink

The amount the UK government can expect to raise from its planned soft drinks levy has been further reduced by £105 million, according to The Office for Budget Responsibility.

In a report published this month, the OBR said it has been informed by HM Revenue and Customs that significant revisions to the data underpinning the estimated yield suggest the size of the tax base was ‘considerably overestimated’.

Mintel is said to have overestimated the level of consumption of such drinks being consumed in pubs, restaurants and cafes, leading the OBR to revise the amount raised from the impending tax – which is supposed to be introduced in April – to £275 million.

The sugar tax was announced in 2016 as a means of raising £520 million through two tax bands – one for sugar content above 5g/100ml and a second higher band for sugar content above 8g/100ml.

However, in the spring Budget earlier this year, the government lowered its estimate of the value of the tax to £380 because producers already began reformulating sugar out of their drinks.

Chancellor Phillip Hammond said that, despite the lower revenue forecast, the government would continue to fund £1 billion in additional spending for UK schools, which the sugar tax was intended to pay for.

After the lower tax yield was revealed in spring, there were questions raised within the industry about its effectiveness.

Director general of the British Soft Drinks Association Gavin Partington said: “We support the need to address the public health challenge the country faces, but it’s worth bearing in mind that there is no evidence taxing a single product or ingredient has reduced levels of obesity anywhere in the world.”

Last month Ireland announced that as of April next year it will introduce a sugar tax of 30c a litre on beverages with more than 8g of sugar.

Source: FoodBev.com

comments closed

Related News

January 23, 2022

IFF appoints Frank Clyburn as CEO

Food & Drink

International Flavors & Fragrances (IFF) has announced the appointment of Frank Clyburn as CEO and member of the board of directors, effective 14 February 2022. Clyburn, who will step down from his position as executive VP and president of human health at Merck & Co, succeeds current IFF CEO Andreas Fibig

January 23, 2022

Jack Link’s expands Peperami range with new chorizo five-packs

Food & Drink

Jack Link’s-owned meat snacking brand Peperami has launched new chorizo five-packs to add to its extensive snack portfolio. The new chorizo sticks are made with 100% pork, packed with protein, contain 99 calories and are unpasteurised to maintain a fuller flavour — providing a shelf life of over six months.

January 23, 2022

More beer in the glass with physics

Food & Drink

While foam is certainly desirable in the bathtub or on beer, preventing foam – for example in industrial processes – is a much-discussed topic. A team of researchers at the Max Planck Institute for Polymer Research has now shown that so-called “superamphiphobic surfaces” can be used to prevent foaming.

Send this to a friend