Budget 2016 sugar tax announcement sees soft drink shares plummet
Shares in Irn Bru maker A G Barr appeared hit hardest by the announcement
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
Shares in soft drink companies have been hit hard by an announcement of a new tax of sugary beverages in George Osborne’s Budget.
The Chancellor announced a levy on sugar to protect the health of children – but said the weight of the measure should be felt by the companies producing the drinks rather than the families buying them.
Companies will be given two years to reformulate their products with reduced sugar levels, after which drinks with over 5g of sugar per 100ml and over 8g per 100ml will be hit with greater taxes in two bands.
Shares in Irn Bru maker A G Barr appeared hit hardest by the announcement, down almost 5 per cent in the moments after it was made.
Britvic, which is the UK licensee for Pepsi products and also produces Robinson’s drinks, saw its shares fall almost 3 per cent.
And Tate and Lyle, which supplies the sugar itself, saw shares drop around 2 per cent.
Mr Osborne said the tax is expected to raise £520 million, and that the money will be set aside for additional funding for sport in schools.
Fruit juices will be excluded from the new charge, while the tax on sugary alcoholic drinks like cider was actually frozen.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments