Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department's consultation Strengthening the Soft Drinks Industry Levy, published on 28 April 2025, what estimate she has made of the annual revenue which would be generated from the proposed changes set out in the consultation.
At Autumn Budget 2024 the Chancellor announced her intention to review the Soft Drinks Industry levy (SDIL) – which has incentivised producers to remove almost half (46%) the sugar in relevant drinks – to further drive product reformulation.
The ‘Strengthening the Soft Drinks Industry Levy’ consultation follows this commitment. Specifically, it sets out proposals to reduce the minimum sugar threshold at which the levy applies from 5g to 4g sugar per 100ml, and to remove the current exemptions for milk-based and milk substitute drinks with added sugar.
The government welcomes feedback on the proposed changes as part of the consultation, which is open until 21 July 2025 and will inform decisions at a future Budget.
The exchequer impact of any changes to SDIL will be confirmed following the consultation and certified by the Office of Budget Responsibility as part of a Budget.