Consultation launched to strengthen the Soft Drinks Industry Levy

The government has launched a new consultation to gather feedback on how they plan to build on the success of the Soft Drinks Industry Levy (SDIL).

The SDIL was announced in the UK in Part 1 of the Childhood Obesity Plan in 2018, in a bid to promote healthier weight in children and young people. The levy was set with two tiers – drinks either falling into the lower threshold of 18p/litre for drinks with 5g+/100ml and 24p/litre for drinks with 8g+/100ml. Drinks containing 75% milk and fruit juices were exempt from the levy due to the calcium and vitamin C these drinks can provide in the diet.

Since its introduction, the SDIL has been a catalyst for extensive reformulation, removing over 45,000 tonnes of sugar from soft drinks[i], with the likes of Tesco own-brand, Lucozade, and Britvic reformulating their products. Sales of low- and high-levy drinks also fell by 79.1% and 54.8% respectively between 2015 and 2019, while sales of no-levy drinks rose by 54.2%[ii].​ Further research reported an associated reduction in obesity rates among girls aged 10-11 years, with the greatest impact in deprived groups[iii]. The levy is also linked to a decrease in tooth extraction admissions generally caused by dental cares in children, with a 12.1% relative reduction in hospital visits[iv].

In October 2024 the government announced, as part of the Autumn Budget, their intention to review the SDIL. After various meetings with key stakeholders, a joint consultation from HMRC and HM Treasury has been launched to gather feedback on the following proposed amendments to the levy:

• Lower the sugar threshold for the SDIL from 5g to 4g of total sugar per 100ml
• Remove the exemption for milk-based drinks but introduce a ‘lactose allowance’ to account for the natural milk sugars.
• Remove the exemption for milk substitute drinks (like oat or rice drinks) if they have added sugars

The consultation features a range of questions based on the government’s proposals and will close on 21^st July 2025.

Find out more and respond to the consultation here

Beth Bradshaw, Food Active Policy and Advocacy Lead responded:

Over the past seven years, the Soft Drinks Industry Levy has proven to be a powerful tool for improving public health. It’s now time to build on this success by exploring how its impact can be maximised.

We also strongly advocate for the levy’s revenue to be ring-fenced and reinvested into initiatives that support children’s health. This approach aligns with the government’s goal of giving every child the best start in life, easing the burden on both health and social care, and promoting a healthier future workforce. We welcome the launch of this new consultation on expanding the levy and look forward to collaborating with partners at both local and national levels to share our insights in formulating a response.

[i] BeverageDaily.com. 2019. Will UK sugar tax be extended to milk drinks? [online] Available at: https://www.beveragedaily.com/Article/2019/07/23/Battle-lines-drawn-over-UK-sugar-tax-and-milkshake-extension/  Accessed 15 April 2025

[ii] Public Health England. 2020. Sugar reduction. [online]. Available at: https://assets.publishing.service.gov.uk/media/60953c63e90e0735727c80be/Sugar_reduction_progress_report_2015_to_2019-1.pdf Accessed: 15^th April 2025

[iii] Rogers, N.T., Cummins, S., Forde, H., et al(2023). Associations between Trajectories of Obesity Prevalence in English Primary School Children and the UK Soft Drinks Industry levy: an Interrupted Time Series Analysis of Surveillance Data. PLOS Medicine. 20(1), p.e1004160

[iv] Rogers, N.T., Conway, D.I., Mytton, O., Roberts, C.H., Rutter, H., et al,. 2023. Estimated Impact of the UK Soft Drinks Industry Levy on Childhood Hospital Admissions for Carious Tooth extractions: Interrupted Time Series Analysis. BMJ Nutrition, Prevention & Health. 6(2)