As you may have heard, George Osborne has announced a so-called "sugar tax" in his 2016 Budget and celebrity chef Jamie Oliver is jumping for joy. The chancellor said the levy on fizzy drinks will come into force in April 2018, and the Treasury expects to raise £520m ($733m) from the policy in its first year.

Osborne has unveiled the measure to help tackle high childhood obesity levels in the UK. The chancellor claims taxing soft drinks will give an incentive to companies to reduce sugar levels in their products. But the proposal is not without controversy. IBTimes UK takes you through the ins and outs of the new sugar tax in the video above.

2016 Budget highlights

  • UK economic growth revised down
  • Extra £3.5bn of public sector cuts
  • Osborne sticks to £10 budget surplus pledge by 2019/20
  • A new 'sugar tax'
  • Fuel and alcohol duties frozen
  • Disabled people hit by reforms
  • VAT crackdown on overseas online firms
  • Lifetime ISA announced