Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the potential revenue to the Exchequer from the proposed soft drinks industry levy.

As announced at Budget 2016, the levy will apply to added sugar soft drinks with total sugars above 5 grams per 100 millilitres.

The Government consulted on the detail of the soft drinks industry levy last year. In December 2016, we published our formal response to the consultation, alongside draft Finance Bill legislation, setting out further detail on the scope of the levy and those drinks included.

As for every Finance Bill measure, HM Revenue and Customs published a Tax Impact Information Note which included an updated impact assessment.

The Office for Budget Responsibility has estimated that the levy will raise £520m in the first year, £500 million in the second year, falling to £455m in the third year as more producers reformulate. These estimates are sensitive to the speed of reformulation.