Soft Drinks: Taxation
The question
To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential economic impact of changes to the thresholds for the Soft Drinks Industry Levy on the level of food inflation.
Answered by James Murray
An assessment of economic and other impacts are included as part of the ‘Strengthening the Soft Drinks Industry Levy’ consultation document. This is available at https://www.gov.uk/government/consultations/strengthening-the-soft-drinks-industry-levy. The direct impact of the proposed changes on CPI inflation is expected to be negligible, less than 0.01 percentage points.
The proposed changes were subject to a consultation, which was open until 21 July 2025 and will inform decisions at a future Budget. If the Government decides to make changes to the levy, it will publish a tax information and impact note (TIIN) to give account of the confirmed policy’s impacts.
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