Sugar tax

Britain’s sugar tax has raised well under half the originally forecast amount in its first seven months, reflecting a huge shift by drinks manufacturers to cut the amount of sugar in their products. The levy has raised £154m since it came into force in April. It will be used to tackle childhood obesity and to fund physical education activities and breakfast clubs in schools. When former chancellor George Osborne announced the tax in 2016, he forecast it would raise around £520m a year. But manufacturers reduced the amount of sugar they use to avoid the levy — one of the government’s intended goals. HM Revenue & Customs said on Tuesday that 457 traders had registered to pay the levy, which imposed an additional tax of 18p a litre on drinks that contain 5g of sugar per 100ml; and 24p a litre on drinks with more than 8g of sugar per 100ml. It added that between the announcement and implementation more than 50 per cent of drinks by volume had had enough sugar removed to no longer be affected by the levy. It now expects the levy to generate £240m annually.

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