Sugar tax cash won’t be spent on health

Health campaigners have expressed disappointment that revenue from a sugar tax on sugary drinks will not be ringfenced to fund initiatives to tackle obesity and promote healthy lifestyles.

Finance Minister Michael Noonan has confirmed he will not set aside funding from the new tax for any specific purpose because he is opposed to the principle of ringfencing any tax revenue.

His stance sets him up for a clash with Health Minister Simon Harris, whose department had called for the proceeds of the tax to be reinvested towards health promotion and early intervention activities.