Soft Drinks: Taxation

(asked on 20th April 2016) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to paragraph 1.95 of the Budget 2016, whether his Department plans to maintain the same level of funding for sports activities, breakfast clubs in schools and extending the school day in circumstances where receipts from the Soft Drinks Industry Levy decline as the tax base for that levy reduces.


Answered by
Greg Hands Portrait
Greg Hands
This question was answered on 26th April 2016

The soft drinks industry levy is part of the government’s strategy to tackle childhood obesity. It is aimed at encouraging producers to reformulate their product mix and move consumers towards lower sugar alternatives.

The levy is expected to raise £520 million in the first year; the OBR expect that this number will fall over time as producers reformulate and consumption of high sugary drinks decreases.

Our spending plans for these policies are as set out in the budget document. This announced that, in England, revenue from the soft drinks industry levy over the scorecard period will be used to:

  • Double the primary school PE and sport premium from £160 million per year to £320 million per year from September 2017.

  • Provide up to £285 million a year to give 25% of secondary schools increased opportunity to extend their school day.

  • Provide £10 million funding a year to expand breakfast clubs from September 2017.

It also confirmed that the Barnett formula will be applied to spending on these new initiatives in the normal way.

Reticulating Splines