LONDON (ShareCast) - (ShareCast News) - The government has confirmed it will introduce a soft drinks industry levy across the UK as part of its plan to tackle childhood obesity.
The Department of Health will launch a "broad, structured sugar reduction programme" that will aim to remove sugar from the products children eat most, namely breakfast cereals, yoghurts, biscuits, cakes, confectionery, pastries, puddings, ice cream and sweet spreads.

"All sectors of the food and drinks industry will be challenged to reduce overall sugar across a range of products that contribute to children's sugar intakes by at least 20% by 2020, including a 5% reduction in year one," said the government's strategy report, which was officially released on Thursday.

Alongside this plan, the Treasury have begun consulting on the technical detail of the soft drinks industry levy, with the tax not due to be applied until April 2018.

After much lobbying against the regulation, the food and drinks industry has agreed to reduce the amount of sugar in products.

Ministers were reported to have watered down the obesity strategy, with curbs on junk-food advertising and price-cutting promotions of junk food both dropped, for instance.

The document stated that the levy was "on producers and importers, and not on consumers", with companies given the two years to lower the sugar in their drinks "so that they won't face the levy if they take action".

Retailers said said that the proposed sugar tax was "a backwards step".

The Association of Licensed Multiple Retailers (ALMR) argued the plan will "do little more than increase costs for both retailers and customers".

But the government pointed out that the money accrued by the levy on sugary drinks will go to fund breakfast clubs and sport, with schools asked to give pupils an extra 30 minutes a day of physical activity, and parents and carers will be encouraged to get their children moving for a further 30 minutes.

Public health minister, Nicola Blackwood, said: "Initiatives like this will make a huge difference to children's health and fitness and we hope our new measures on school sport will help to create future Team GB Olympians."

Professor Graham MacGregor, chairman of Action on Sugar and Consensus Action on Salt and Health, said the government was effectively allowing the food industry to police themselves.

"It is an insulting response to the UK crisis in type-2 diabetes, both in children and adults. This will bankrupt the NHS unless something radical is done."

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