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| Sugar tax surprise in Budget - but growth forecasts cut | Sugar tax surprise in Budget - but growth forecasts cut |
| (35 minutes later) | |
| George Osborne has unveiled a tax on sugary drinks in a wide ranging Budget dominated by gloomier growth forecasts. | George Osborne has unveiled a tax on sugary drinks in a wide ranging Budget dominated by gloomier growth forecasts. |
| The chancellor blamed the slowdown on a "dangerous cocktail" of global risks and said the UK had to "act now so we don't have to pay later". | The chancellor blamed the slowdown on a "dangerous cocktail" of global risks and said the UK had to "act now so we don't have to pay later". |
| He announced an extra £3.5bn in spending cuts - and sparked controversy by warning of the risks of EU exit. | He announced an extra £3.5bn in spending cuts - and sparked controversy by warning of the risks of EU exit. |
| He found cash to freeze fuel duty and cut some business taxes - but Labour said he could not hide his "failure". | He found cash to freeze fuel duty and cut some business taxes - but Labour said he could not hide his "failure". |
| Key Budget announcements include: | |
| The £530m raised by a tax on the sugar content of soft drinks - the equivalent of about 18-24p per litre, the government says - will be spent on primary school sports in England, with the devolved administrations in Scotland, Wales and Northern Ireland free to decide how to spend their share. | |
| Mr Osborne's sugar tax announcement sparked a big fall in the share price of soft drinks makers but it was welcomed by TV chef Jamie Oliver, who has been campaigning for such a move. He told BBC News it was "a big moment in child health" and a "symbolic slap" to business rather than "anti-business". | Mr Osborne's sugar tax announcement sparked a big fall in the share price of soft drinks makers but it was welcomed by TV chef Jamie Oliver, who has been campaigning for such a move. He told BBC News it was "a big moment in child health" and a "symbolic slap" to business rather than "anti-business". |
| Sugar tax in focus | Sugar tax in focus |
| The tax will be levied on the volume of the sugar-sweetened drinks companies produce or import. | The tax will be levied on the volume of the sugar-sweetened drinks companies produce or import. |
| The Office for Budget Responsibility says it could result in a "pretty substantial price rise" on products - as much as 80% on, for example, a two-litre bottle of own-brand cola. | The Office for Budget Responsibility says it could result in a "pretty substantial price rise" on products - as much as 80% on, for example, a two-litre bottle of own-brand cola. |
| There will be two bands - one for total sugar content above 5 grams per 100 millilitres; a second, higher band for the most sugary drinks with more than 8 grams per 100 millilitres, with the levels yet to be set. | There will be two bands - one for total sugar content above 5 grams per 100 millilitres; a second, higher band for the most sugary drinks with more than 8 grams per 100 millilitres, with the levels yet to be set. |
| Examples of drinks which would currently fall under the higher rate of the sugar tax include full-strength Coca-Cola and Pepsi, Lucozade Energy and Irn-Bru, the Treasury said. The lower rate would catch drinks such as Dr Pepper, Fanta, Sprite, Schweppes Indian tonic water and alcohol-free shandy. | Examples of drinks which would currently fall under the higher rate of the sugar tax include full-strength Coca-Cola and Pepsi, Lucozade Energy and Irn-Bru, the Treasury said. The lower rate would catch drinks such as Dr Pepper, Fanta, Sprite, Schweppes Indian tonic water and alcohol-free shandy. |
| BBC Health Editor Hugh Pym said the tax had come as "a bolt from the blue" - particularly as Downing Street had opposed the idea last Autumn. It was attacked at the time by some Conservative MPs as "nannystate-ism". | BBC Health Editor Hugh Pym said the tax had come as "a bolt from the blue" - particularly as Downing Street had opposed the idea last Autumn. It was attacked at the time by some Conservative MPs as "nannystate-ism". |
| Read more about how it will work | Read more about how it will work |
| How has Osborne's spoonful of sugar tax gone down? | |
| In his biggest Parliamentary test to date, Labour leader Jeremy Corbyn delivered the Opposition's response, describing Mr Osborne's Budget as "the culmination of six years of his failures" which had "unfairness at its core". | In his biggest Parliamentary test to date, Labour leader Jeremy Corbyn delivered the Opposition's response, describing Mr Osborne's Budget as "the culmination of six years of his failures" which had "unfairness at its core". |
| The Labour leader said the financial proposals failed on productivity, investment and in tackling inequality - and gave tax cuts to the wealthy while disabled people lose more than £1bn. | The Labour leader said the financial proposals failed on productivity, investment and in tackling inequality - and gave tax cuts to the wealthy while disabled people lose more than £1bn. |
| But he welcomed Mr Osborne's sugar tax, which will be introduced in two years' time and will not apply to fruit juices or milk-based drinks. | But he welcomed Mr Osborne's sugar tax, which will be introduced in two years' time and will not apply to fruit juices or milk-based drinks. |
| Announcing the move, Mr Osborne said: "I am not prepared to look back at my time here in this Parliament, doing this job and say to my children's generation: 'I'm sorry - we knew there was a problem with sugary drinks. We knew it caused disease. But we ducked the difficult decisions and we did nothing'." | Announcing the move, Mr Osborne said: "I am not prepared to look back at my time here in this Parliament, doing this job and say to my children's generation: 'I'm sorry - we knew there was a problem with sugary drinks. We knew it caused disease. But we ducked the difficult decisions and we did nothing'." |
| BBC experts analyse the Budget | |
| Political editor Laura Kuenssberg: Can Osborne defy political history? | |
| Economics editor Kamal Ahmed: Osborne stakes reputation on 2020 surplus | |
| Business editor Simon Jack: Small businesses are the winners | |
| Political correspondent Iain Watson: Corbyn gets mixed reviews | |
| Mr Osborne said the UK was still on course to clear its deficit by 2019/20 thanks to the extra spending cuts, and he hailed his package of measures as "a Budget that puts the next generation first" and made Britain more "secure" in the world. | Mr Osborne said the UK was still on course to clear its deficit by 2019/20 thanks to the extra spending cuts, and he hailed his package of measures as "a Budget that puts the next generation first" and made Britain more "secure" in the world. |
| But in a move that has angered Conservative colleagues who think the UK would be better off out of the European Union, he cited the Office for Budget Responsibility's view that the UK would be "safer, stronger and more secure" if voters chose to remain in the EU in June's referendum. | But in a move that has angered Conservative colleagues who think the UK would be better off out of the European Union, he cited the Office for Budget Responsibility's view that the UK would be "safer, stronger and more secure" if voters chose to remain in the EU in June's referendum. |
| Mr Osborne said the OBR had made clear its forecasts were based on the assumption the UK would remain in the EU and had warned that "there appears to be a greater consensus that a vote to leave would result in a period of potentially disruptive uncertainty". | Mr Osborne said the OBR had made clear its forecasts were based on the assumption the UK would remain in the EU and had warned that "there appears to be a greater consensus that a vote to leave would result in a period of potentially disruptive uncertainty". |
| In a statement, Conservative MP and Leave campaigner David Davis said: "The real risks for Britain lie in remaining within the EU. | In a statement, Conservative MP and Leave campaigner David Davis said: "The real risks for Britain lie in remaining within the EU. |
| "Many of the 'cloudy skies' and 'cocktail of risks' the chancellor speaks of originate from a failing, shrinking and unstable European economy." | "Many of the 'cloudy skies' and 'cocktail of risks' the chancellor speaks of originate from a failing, shrinking and unstable European economy." |
| Mr Osborne's package includes a £1.5bn plan to turn all state schools into academies and allow some to have longer days. | Mr Osborne's package includes a £1.5bn plan to turn all state schools into academies and allow some to have longer days. |
| In other Budget announcements, Mr Osborne committed £300m for transport projects, with the government funding the start of work on the Crossrail 2 rail line and new High Speed 3 link across the north of England. | In other Budget announcements, Mr Osborne committed £300m for transport projects, with the government funding the start of work on the Crossrail 2 rail line and new High Speed 3 link across the north of England. |
| Almost half of the transport money committed was announced in the Autumn Statement. | Almost half of the transport money committed was announced in the Autumn Statement. |
| According to the Office for Budget Responsibility the reduction in the UK's growth forecast from 2.4% to 2% in 2016 has been driven by a lower forecast for potential productivity growth - the amount of output growth per hour worked the economy is capable of producing sustainably. | According to the Office for Budget Responsibility the reduction in the UK's growth forecast from 2.4% to 2% in 2016 has been driven by a lower forecast for potential productivity growth - the amount of output growth per hour worked the economy is capable of producing sustainably. |
| The OBR also said the government is going to breach its own welfare cap in every remaining year of this Parliament. | The OBR also said the government is going to breach its own welfare cap in every remaining year of this Parliament. |
| The additional spending is mainly caused by more people than expected being eligible for disability benefits, said BBC social affairs Correspondent Michael Buchanan, despite cuts announced last week to the Personal Independence Payment aimed at saving £1.3bn. | The additional spending is mainly caused by more people than expected being eligible for disability benefits, said BBC social affairs Correspondent Michael Buchanan, despite cuts announced last week to the Personal Independence Payment aimed at saving £1.3bn. |
| There will be new action to tackle overseas retailers who who store goods in Britain and sell them online without paying VAT - and new tax free allowances for "micro entrepreneurs" who rent their homes or sell services through the internet. | There will be new action to tackle overseas retailers who who store goods in Britain and sell them online without paying VAT - and new tax free allowances for "micro entrepreneurs" who rent their homes or sell services through the internet. |
| Reforms to business rates will mean 6,000 small businesses pay no rates and 250,000 have their rates cuts from April 2017, said Mr Osborne. | Reforms to business rates will mean 6,000 small businesses pay no rates and 250,000 have their rates cuts from April 2017, said Mr Osborne. |
| Mr Osborne announced a major overhaul of the North Sea tax regime aimed at helping the UK's oil and gas industry, effectively abolishing the Petroleum Revenue Tax. | Mr Osborne announced a major overhaul of the North Sea tax regime aimed at helping the UK's oil and gas industry, effectively abolishing the Petroleum Revenue Tax. |
| The SNP's deputy leader Stewart Hosie welcomed the move - but criticised the overall Budget package, saying Mr Osborne had "failed to tackle the debt, the deficit and the borrowing as he promised" and urging him to abandon austerity and invest more in growth. | The SNP's deputy leader Stewart Hosie welcomed the move - but criticised the overall Budget package, saying Mr Osborne had "failed to tackle the debt, the deficit and the borrowing as he promised" and urging him to abandon austerity and invest more in growth. |
| How has the Budget affected you? Are you worse off or better off? Send your comments and questions to haveyoursay@bbc.co.uk. | How has the Budget affected you? Are you worse off or better off? Send your comments and questions to haveyoursay@bbc.co.uk. |
| You can also contact us in the following ways: | You can also contact us in the following ways: |
| Or use the form below | Or use the form below |