Soft Drink Industry Levy Extended

Earlier today, the Government announced an expansion of the Soft Drinks Industry Levy (SDIL), widening it to include sugary milk-based drinks and lowering the lower threshold of the tax from 5g to 4.5g.

The Obesity Health Alliance, a coalition of over 65 organisations including ADPH, has long called on the Government to build on the success of the SDIL; which evidence shows has been hugely effective in reducing sugar consumption and associated with reductions in tooth extractions in children and cases of obesity in girls 10-11 – all without harming industry growth.

Katharine Jenner, Executive Director of the Obesity Health Alliance welcomed the news, saying:

“Ending the exemption for sugary milkshakes and bringing more sugary soft drinks into the levy is a sensible and long-overdue step to protect children’s health – especially their teeth.  The Soft Drinks Industry Levy has already removed billions of teaspoons of sugar from the nation’s diet without harming industry growth, proving that clear, consistent rules are effective.

The levy will now apply to pre-packaged sugary drinks such as flavoured milks, milkshakes, sweetened yoghurt drinks, chocolate milk drinks and ready-to-drink coffees. Plain, unsweetened milk and milk-alternative drinks and milkshakes and sweetened coffees sold in out of home outlets including coffee shops, as well as Growing Up Milks, will remain exempt.

Government modelling suggests the extension could reduce adults’ daily calorie intake by 13 million and children’s by 4 million across England, which could amount to £1 billion in combined health and economic benefits, including £36 million in NHS savings, £30 million in reduced social care pressures and more than £200 million in economic gains through improved workforce participation.

Manufacturers have until 1 January 2028 to reduce sugar levels or face the charge.