Soft drinks tax will not reduce calorie intake much, but will risk thousands of jobs and millions of pounds of investment in the UK, according to a new report. 

The new report from Oxford Economics indicates that the proposed soft drinks tax by the Government will result in a cut down of five calories per day, which is almost the same as just one bite of an apple; however, the proposal will risk more than 4,000 jobs in the country.

The tax will have an impact across the wider economy and especially in the hospitality sector and smaller retailers.

"As an industry we recognise that obesity must be tackled."

Due to decline in sales, the industry’s contribution to the economy will reduce by £132m.

In support of this report, British Soft Drinks Association director general Gavin Partington said: "Post-Brexit, securing investment and jobs is more important than ever. This research shows the soft drinks tax is not only ineffective in fighting obesity but will come at a significant price for the economy, costing thousands of jobs. 

“As an industry we recognise that obesity must be tackled which is why we have invested heavily in reformulating drinks. Since 2012 this has led to a 16% reduction in sugar intake from soft drinks. The tax is therefore unnecessary and harmful to our economy.”

According to BSDA, the soft drinks sector was the only food and drink category with a plan to reduce calorie intake from its products by 20% by 2020.