LONDON -- The British government has revealed plans to levy a sugar tax on soft drinks, which they claim will raise £520 million ($732 million) for primary school sports.
The tax will be imposed on soft drinks manufacturers, rather than on consumers.
"Some [companies] may choose to pass the price onto consumers and that will be their decision," said Chancellor George Osborne, while delivering the budget to the House of Commons on Wednesday afternoon.
Osborne said that pure fruit juices and milk-based drinks will be excluded from the tax, while drinks will be assessed in two bands, one for total sugar content over 5g per 100 millilitres, and a second, higher band for drinks with more than 8g per 100 millilitres.
"Doing the right thing for the next generation is what this government and this Budget is about," Osborne told MPs.
"A Britain fit for the future, a government not afraid to put the next generation first," he continued.
The tax will be introduced in two years' time to allow companies time to reduce sugar content in drinks.
Jeremy Corbyn, leader of the opposition, welcomed the sugar tax to "protect our children."
"He spoke at some length on the issue of ill health among young children and the way in which sugar is consumed at such grotesque levels within our society and I agree with him about that," Corbyn said.
"If we as a society cannot protect our children from high levels of sugar and all that goes with it with the later crisis of health cancer and diabetes then as a house we’ve failed the nation. I support his proposals on sugar as I hope all members of this house will," he continued.
TV chef Jamie Oliver -- who has campaigned heavily for a sugar tax to combat childhood obesity -- expressed his delight on Instagram at the newly announced plans.
We did it guys !!we did it !!! A sugar levy on sugary sweetened drinks ...... A profound move that will ripple around the world ....business can not come between our Kids health !! Our kids health comes first ..... Bold, brave , logical and supported by all the right people....now bring on the whole strategy soon to come ... Amazing news #jamieoliver A photo posted by Jamie Oliver (@jamieoliver) on Mar 16, 2016 at 6:32am PDT
Campaign group Action on Sugar backed the plans, but stressed that the levy needed to be "at least 20% on all sugar-sweetened soft drinks and confectionary" in order for it to be effective.
Professor Graham MacGregor, Chair of Action on Sugar, said:
We are delighted to see in today’s budget announcement that the government will be introducing a new sugar levy on soft drinks which will be used to double the funding they dedicate to sport in every primary school.
However, for this to be effective it’s imperative that the levy is at least 20% on all sugar-sweetened soft drinks and confectionary and escalate thereafter if companies do not comply to reformulation targets -- and this must be implemented immediately.
The country is still eagerly awaiting for David Cameron to announce his long over due childhood obesity strategy and he now has a unique opportunity to produce a coherent, structured evidence-based plan based on our six key recommendations, which includes food and drink reformulation, to prevent obesity, type 2 diabetes and tooth decay.