Osborne’s controversial Budget was announcement last Wednesday and one of the proposals has already taken a hit by major international companies. The measure considered outrageous, both by public and some of the major international companies in the industry, is the new sugar tax. A new sugar tax on the soft drinks industry is aimed at raising £520m a year. This is considered a strategy of social engineering to push the British people towards a healthier lifestyle.
The tax is set to launch in April 2018 and will put up the price of drinks containing at least 5g of sugar per 100ml; common sodas such as Coca-Cola, Red Bull, and Irn-Bru will all face a higher rate of tax.
Industry bosses are getting ready to sue the Government, as reports in The Guardian and The Sunday Times show. They could claim that, since the tax does not target other high sugar beverages, such as coffee and milkshakes, that the tax is discriminatory.
Hearing about these plans, the chancellor has been quoted saying: “If they want an argument about the sugar tax, bring it on.”. Osborne advised the companies not to start legal proceedings as this move would “waste their time and money”.
The improvement on the children’s health and the sum of money that would be raised through the tax has made the Chancellor hold firm to his budget proposal.