UK food and drink industry urges government to delay sugar tax plan

The UK's food and drink industry has urged the government to delay its plans for sugar tax as it fears this will affect businesses due to rising inflation, worker shortage and weak consumer confidence after the Brexit vote.

Industry lobby group Food and Drink Federation (FDF) director general Ian Wright was quoted by The Guardian as saying: “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 FDF includes members such as Coca-Cola, Pepsi, and Tango.

The food and drink industry contributes 16% of the total turnover of UK manufacturing sector.

Following the Brexit vote, the value of the pound has collapsed, which has subsequently raised the cost of ingredients imported into the country. In addition, the status of migrant workforce is still not clear.

Out of the four employed in the country's food and drink manufacturing sector, one belongs to other EU countries.

The sector employs almost 400,000 people.

According to Wright, a sugar levy introduced by chancellor George Osborne in the budget will damage the industry.

Wright added: “All the work that has been done is from the assumption that we are part of the EU. At the very least, the consultation has to restart.”

The government expects to raise £520m through the tax in the first year, which would be allocated for funding sports in schools.