A study by the TaxPayers’ Alliance looked at the effect the sugar tax in Mexico had on jobs and economic output. It found that if the levy had the same impact on the UK economy, it would result in 5,624 less jobs.
This would in turn lead to the Treasury receiving £17,300,370 less in job-related taxes, the group claimed.
Jonathan Isaby, chief executive of the TaxPayers' Alliance, said, "Not only will the sugar tax fail in its public health aims, there is a very real risk that it will destroy jobs and harm economic growth. Given it will also hit the poorest households the hardest, the already flimsy case for a sugar tax is rapidly dissolving. The government should be focusing on policies which encourage economic growth, so the sugar tax should be immediately scrapped."