Britvic joins soft drinks group preparing to sue over sugar tax

SOFT drinks manufacturer Britvic has joined a consortium of manufacturers preparing to sue the Government over the sugar tax which was announced last week.

The manufacturer of drinks brands including J20 started work on a £7m factory in Leeds last June , which will add 40 jobs to the company’s operations in the city, bringing employee numbers in the city to 200.

Introduced in the Budget last week by Chancellor George, the sugar tax puts him on a collision course with manufacturers such as Coca Cola, Red Bull and Iron Bru, according to The Sunday Times.

Shares in soft drinks companies plummetted following the announcement.

They are preparing a legal challenge against the levy which will come into effect in 2018.

The sugar tax will add 24p a litre to products with the highest sugar content. Osborne said it would raise £520m a year.

The Chancellor has faced further backlash following the Budget last week, with Work and Pensions Secretary Iain Duncan Smith resigning in the wake of cuts to disability benefits.