Posted: 30/09/2021

How the proposed sugar tax will affect your business


sugar tax

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.


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