Soft Drinks: Taxation

(asked on 21st April 2016) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the amount which the soft drinks industry levy will raise for public expenditure in Scotland.


Answered by
Damian Hinds Portrait
Damian Hinds
Minister of State (Education)
This question was answered on 26th April 2016

The soft drinks industry levy is part of the government’s strategy to tackle childhood obesity. It is aimed at encouraging producers to reformulate their product mix and move consumers towards lower sugar alternatives.

The levy is expected to raise £520 million in the first year across the UK; the OBR expect that this number will fall over time as producers reformulate their product mix and consumption of high sugar drinks decreases. In England, the revenue will be used to double the primary school PE and sport premium; provide funding to give 25% of secondary schools increased opportunity to extend their school day to offer a wider range of activities for pupils; and fund the expansion of breakfast clubs in up to 1,600 schools.

As stated at Budget 2016, the Barnett Formula will continue to be applied to spending on these new initiatives in the normal way.

Reticulating Splines