Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of reducing the lower threshold of the Soft Drinks Industry Levy on (a) business investment decisions in the food and drink manufacturing sector, (b) the growth of that sector and (c) (i) investment and (ii) growth by food and drink manufacturing companies in the South West.

The proposed changes to the Soft Drinks Industry Levy were subject to the ‘Strengthening the Soft Drinks Industry Levy’ consultation, which was open from 28 April to 21 July 2025. An assessment of economic and other impacts is included as part of this consultation document. This is available at

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

The Government is considering the consultation responses, including those providing evidence of the potential impacts on growth and investment, prior to making a decision at Budget. If the Government decides to make changes to the levy, it will publish an updated assessment of the confirmed policy’s impacts.