JAMIE Oliver today celebrated the introduction of a new sugar tax on the soft drinks industry which is set to raise around £520m a year.

In a move that will be welcomed by child health campaigners, George Osborne said the cash raised will be spent on doubling funding for sport in primary schools.

The levy will be introduced in two years' time, to give companies time to adapt products to reduce their sugar content. The Chancellor said manufacturers can choose whether to pass on the cost to customers.

Advertisement

The announcement sent shares in listed drinks firms plummeting.

Irn-Bru maker AG Barr, which also makes Tizer and St Clement's, fell 4 per cent, while Robinsons squash firm Britvic fell 2 per cent and Vimto maker Nichols plunged as much as 7 per cent.

AG Barr - the makers of Irn-Bru