Government Launch 'Strengthening the Soft Drinks Industry Levy' Consultation
Action on Salt and Sugar welcome the government’s bold proposals to strengthen the Soft Drinks Industry Levy (SDIL), commonly known as the Sugar Tax, as part of a broader effort to reduce sugar consumption and support healthier diets.
In a newly launched consultation, HMRC and HM Treasury are seeking views on proposed updates to the SDIL, aimed at reinforcing its effectiveness in encouraging manufacturers to lower the sugar content of drinks.
The proposed changes include:
- Lowering the sugar threshold at which the levy is applied—from 5g to 4g of sugar per 100ml, ensuring a wider range of drinks are subject to the levy.
- Removing the current exemption for sugary milk-based drinks and adopting a ‘lactose allowance’ to account for naturally occurring milk sugars.
- Extending the levy to milk substitute drinks that contain added sugars beyond those derived from the primary ingredients (e.g., oats or rice).
These reforms represent an important step forward in aligning food and drink policy with public health objectives and ensuring consistency in sugar reduction.
Dr Kawther Hashem, Head of Research and Impact within Action on Sugar commented:
"We are delighted to see the government taking steps to strengthen the Soft Drinks Industry Levy (SDIL) which has already driven significant reductions in sugar across the drinks industry, and these new proposals are a bold and necessary next step.
Furthermore, we strongly support the move to reduce the minimum sugar threshold and to end the exemptions for sugary milk-based and milk-substitute drinks. This ensures a more consistent and fair approach across all types of drinks, and it makes absolute sense for public health.
Hopefully, these proposals will encourage even more companies to innovate and reduce the sugar and sweetness of their products, building on the progress already made."
The consultation will close on 21 July 2025.
