Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to the Soft Drinks Industry Levy thresholds on business competitiveness.

The Soft Drinks Industry Levy (SDIL) is globally recognised as a transformative health intervention. 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 impacts have been achieved without a negative impact on soft drink sales, with sales of drinks subject to the levy increasing by 21% between 2015 and 2020.

Given SDIL’s success, the Chancellor announced at Autumn Budget 2024 her intention to review the levy to enhance its impact. The ‘Strengthening the Soft Drinks Industry Levy’ consultation, published on 28 April 2025, follows this commitment. Specifically, it sets out proposals to reduce the minimum sugar threshold at which the levy applies from 5g to 4g sugar per 100ml, and to remove the current exemptions for milk-based and milk substitute drinks with added sugar.

The government takes potential business impacts seriously, continues to engage with businesses, and welcomes further feedback as part of the consultation, which is open until 21 July 2025.

The government expects to confirm any changes to the levy at the upcoming Budget, and will publish a Tax Information and Impact Note (TIIN) alongside the confirmed policy. This will set out the expected impact of any changes on businesses and civil society organisations.

The Competition and Markets Authority is responsible for investigating anti-competitive practices. As an independent authority, the CMA has discretion to investigate competition cases which, according to its prioritisation principles, it considers most appropriate.