How the proposed sugar tax will affect your business
Fine Food Producers have raised concerns over the negative impact that a sugar tax, as proposed in the recent government-commissioned National Food Strategy, would have on the industry. Here, we look at what the tabled new levy would look like in practice.
λ The Government would introduce a £3/kg tax on sugar sold for use in processed foods or restaurants and catering businesses.
λ This would replace the Soft Drinks Industry Levy.
λ The tax would apply to all sugar and other ingredients used for sweetening.
λ It would not apply to sugar used in home cooking.
λ Imports of processed food would be taxed according to sugar content when they enter the UK.
λ The taxes would be introduced through primary legislation in the 2024 Finance Bill.
λ There would be a three-year period before implementation to facilitate adaptation.
λ A series of measures would ensure that low-income households received financial support to prioritise healthy eating, including an expansion of free school meals.
λ The estimated reduction in sugar consumption would bring the UK up to 83 per cent closer to a target level of 30g per person per day, said the report.
λ This would reduce the average calories eaten per person per day by up to 38kcal, which could halt weight gain at a population level, according to the paper.
Read more Fine Food Digest reporting on the sugar tax, and the national food strategy here.