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'Delay the sugar tax' - food industry body urges

12th Jul 2016 - 08:50
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Abstract
The sugar tax should be delayed following the UK’s decision to leave the European Union, according to the Food and Drink Federation.

Manufacturers facing workers shortages, cost inflations and an overall weak consumer confidence are cited as reasons to delay the tax.

Ian Wright, the director general of FDF, told media: “The whole thing should be paused. Confidence in the consumer goods market is very fragile and the government has promised not to impose any new burden on industry.

The industry relies heavily on the migrant workforce, with one in four of the 400,000 people employed in UK food and drink manufacturing from EU countries. It has also been rocked by the falling value of the pound, which is in turn increasing the cost of importing ingredients.

The sugar tax was introduced by chancellor George Osborne back in his March budget and is due to come into force in April 2018. Soft drinks containing 5g of added sugar per 100ml will be taxed, with a higher rate enforced for those containing more than 8g per 100ml.

The tax was championed and campaigned for by many chefs, politicians and health professionals, perhaps most prominently by celebrity chef and school food campaigner Jamie Oliver.

Written by
PSC Team