Soft drinks companies frustrated at the U.K. government's decision to impose a tax on the sugar in beverages are considering legal action, the industry body told CNBC.
Last week, U.K. finance minister George Osborne announced plans for a soft drinks levy in his budget speech. The tax, which will be introduced in 2018, will be paid by producers and charged on products containing more than 5 grams of sugar per 100ml, with a higher rate of tax for products containing more than 8 grams.
Osborne said in his speech that he expects the levy to raise £520 million ($749 million) in its first year. The soft drinks market in the U.K. is worth £15.7 billion, according to the British Soft Drinks Association (BSDA).