The Sugar Tax is Here - But What's the Cost?

From today, 6th April, a new tax will apply on sugary drinks in the UK, with drinks containing more than 5g of sugar per 100ml being taxed 18p per litre, and those with over 8g per 100ml taxed 24p per litre. The new levies are being put in place to tackle the rising levels of obesity in the country.

It's estimated that the new levy with raise approximately £240m in 2018-19, and it follows the soft drinks levy that was imposed in 2016. However, despite being introduced for the right reasons, the announcement has been met with mixed opinion.

Drinks manufacturers have reacted in one of two ways in general to the introduction of the new tax - either by altering recipes to reduce the sugar content, much to the displeasure of over 52,000 IrnBru fans, or by increasing prices to absorb the taxation.

How will it affect you?

On average, fizzy drinks which have stuck to their original recipes will see a price rise of around 8p for the consumer. Such brands include Coca Cola, Pepsi and Red Bull. IrnBru on the other hand, having halved its sugar content through changes to its recipe, will now avoid the new tax.

The government has laid out plans to spend the money raised on promoting healthier lifestyles and creating initiatives for healthy eating, mostly aimed at children.