UK Budget: Govt to introduce sugar levy on soft drinks by 2018

16th Mar 2016 13:28

(ShareCast News) - Soft drink makers will be forced to pay a new government levy under plans announced by Finance Minister George Osborne in his annual Budget on Wednesday.He told parliament the levy would be used to fund school sports and help to fund extending school days for wider activities that will be voluntary for schools but compulsory for pupils.Osborne added that companies could pass on costs to consumers, but should realise this would drive down sales.He said the levy, which would be applied in two bands at 5g/100ml and 8g/100ml, was expected to raise £520m.Shares in Irn Bru maker AG Barr shot down 5% immediately on the news, with peers Britvic down 4% and Nichols losing 2.5%