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There are fewer surprises these days than there used to be, given the modern habit of trailing some of the budget proposals in advance. Also, many of the announcements are long-term announcements, which won’t take effect straight away, and which will therefore give business more time to prepare.

We listened in vain for the announcement of a reduction in the rate of VAT charged on fruit juice and smoothies. A glass of fruit juice can count towards the five-a-day target for fruit and vegetables in the diet, but also carries VAT at 17.5%. The government is therefore encouraging and discouraging fruit juice consumption at the same time. We had hoped that the government’s tax policy and its health policy would be brought into line. Sadly, not this year.

The increasing cost of energy

Turning to environmental measures, there was a range of proposals that will have an impact on our industry as a whole. Most notably, the power companies will have to pay for their permits under the Emissions Trading Scheme, rather than being given them for free as is the case at present. This will increase the cost of energy. But this is also one of those proposals that will start in years to come – in 2012, in fact – but for which we need to start preparing now.

The other eye-catching things in the budget, such as charges for plastic bags in supermarkets and an increase in fuel duty, are part of the overall drive to increase the cost of resource use with the aim of helping the environment. The soft drinks industry is already working to reduce its environmental footprint – plastic bottles are 30% lighter than they were 15 years ago, for example – so we will respond to these new challenges as we have the previous challenges. Becoming more resource- and energy-efficient is second nature to the soft drinks industry.

Finally, there's the increase in duty on alcohol. The chancellor wants to make it less affordable, as a reaction against binge drinking. We hope that the government will also welcome the social role that soft drinks play as a refreshing and responsible alternative to alcohol. A growing range of adult-oriented soft drinks provides a credible option in pubs and clubs, as the industry strives to meet the demands of its consumers.

Whatever the ups and downs in the economy, and the chancellor is certainly forecasting those in the years to come, the soft drinks industry will remain on hand to refresh the nation, providing choice that consumers want and the drinks that they like.