Soft Drinks: Taxation
The question
To ask the Chancellor of the Exchequer, whether she has had recent discussions with the Secretary of State for Business and Trade on (a) potential changes to the threshold at which the Soft Drinks Industry Levy starts and (b) the potential impact of that levy on (i) the economy and (ii) her fiscal policy.
Answered by James Murray
His Majesty’s Treasury engages with the Department for Business and Trade at ministerial and official level on a range of issues.
The Soft Drinks Industry Levy (SDIL) is central to the Government’s strategy for reducing rates of obesity, and helping to secure the fit and healthy population that is essential for a thriving economy.
After SDIL was announced, the average sugar content of soft drinks in scope of the levy fell 46% between 2015 and 2020. These positive health outcomes have been achieved without a negative impact on soft drink sales, with sales of drinks subject to the levy increasing by 21% over the same period.
The Government is currently consulting on proposals to strengthen SDIL.
Any changes to the levy will be announced at a future fiscal event, with costings certified by the Office of Budget Responsibility as standard.
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