Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential cumulative impact of (a) proposed changes to the Soft Drinks Industry Levy thresholds, (b) the extended producer responsibility scheme and (c) the Deposit Return Scheme on the financial sustainability of the soft drink industry.

Implementing the Collection and Packaging Reforms is a critical step in the transition to a circular economy that delivers sustainable growth and produces less waste, rubbish and litter.

The Government believes it is right that the costs of dealing with household packaging waste are moved away from taxpayers and onto the businesses that place packaging on the market.

The extended producer responsibility (pEPR) scheme is designed to incentivise businesses to redesign and use more sustainable packaging materials, resulting in lower pEPR fees.

An assessment of impacts – including economic impacts for businesses – has been conducted in relation to (i) the proposed changes to the Soft Drinks Industry Levy, (ii) the extended producer responsibility scheme and (iii) the Deposit Return Scheme. These impact assessments are available here:

https://www.gov.uk/government/consultations/strengthening-the-soft-drinks-industry-levy

https://www.legislation.gov.uk/uksi/2024/1332/impacts

https://www.legislation.gov.uk/ukia/2024/167/pdfs/ukia_20240167_en.pdf

If the Government decides to make changes to the Soft Drinks Industry levy, it will also publish a tax information and impact note (TIIN) to give account of the confirmed policy’s impacts.

Following the 'Strengthening the Soft Drinks Industry Levy' consultation, the government expects to confirm the final policy at Autumn Budget 2025'.