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
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.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.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments