Chancellor George Osborne has announced that the long-awaited sugar tax is going to happen.

Delivering the news in his Budget 2016 announcement today (16 March), Osborne said that the levy will now be enforced in 2018.

Pure fruit juices will be excluded from the tax, which will target the 'biggest contributor to child obesity'.

There were reports earlier this month that a decision on the tax had been delayed until after the summer.

The sugar levy will be introduced on soft drinks. It will come into force in two years' time to give the industry time to adjust, Osborne said.

The £520 million expected to be raised from implementing it will be used to help support school sport, he confirmed.

Although the tax will be levied on the companies themelves, Osborne admitted that some soft drink giants will be likely to pass on the costs to the consumer.

Other announcements in Budget 2016 included:

- Corporation tax is to be cut from 20 per cent to 17 per cent by April 2020

- An extra £700m for flood defences, to be paid with a 0.5 per cent increase on the tax on insurance premiums

- Reforms to business rates, meaning 6,000 small businesses pay no rates, and 250,000 have their rates cuts from April 2017

-Tolls on Severn River crossings to be halved by 2018

-A million jobs forecast to be created by 2020

NFU president Meurig Raymond said of the changes to corporation tax: “I had really hoped that the chancellor would have recognised by now that all parts of the economy should benefit from tax simplification, as it is there is little support for capital investment on farm for buildings and reservoirs.'

He added: 'It’s particularly disappointing that the chancellor has announced nothing to help mitigate the additional costs and pace of introducing the National Living Wage from April this year.

“News that the country will invest £700m more in its flood defences will be welcomed by the many farmers and their families who have faced devastating damage this winter. But we should be clear this is funded by an increase in insurance premiums for all.

“We also welcome the announcement of a permanent increase in small business rate relief from £6,000 to £15,000 meaning that 600,000 small businesses will no longer pay business rates. This is welcome news for farmers with diversified enterprises.'

The leader of the opposition, Labour's Jeremy Corbyn, backed Osborne's introduction of the sugar tax:'I support his proposals on sugar, and I hope everyone in this house will.'

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