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Over the past few years we've written a lot of articles about advertising less healthy food and drink.
And the changes keep coming. The UK government has now published the outcome of its consultation about expanding the scope of the Soft Drinks Industry Levy (SDIL), more commonly known as the sugar tax. It plans to extend its scope with effect from 1 January 2028.
The consultation response includes a summary of feedback received on the proposed changes to the SDIL and confirms the outcome of the consultation:
- the government will reduce the current lower threshold at which SDIL applies from 5g of total sugars per 100ml to 4.5g of total sugars per 100ml;
- the government will remove the current exemption for milk-based drinks with added sugar. A 'lactose allowance' will be introduced to account for naturally occurring sugars in milk; and
- the government will remove the exemption for milk substitute drinks with added sugar. Milk substitute drinks without added sugar will remain outside the scope of SDIL. This includes plant-based drinks that only contain sugars derived from their principal or "core" ingredient.
The government says that it will consult on the draft legislation next year and introduce changes to legislation in a subsequent Finance Bill, with the changes taking effect on 1 January 2028. According to the BBC, it is expected to bring in £40 million to £45 million a year in extra tax receipts.
However, with the previous iteration of the SDIL, manufacturers reformulated some of their products so that they weren't subject to the tax. The government recognises that the policy changes will ask soft drink producers to adapt and invest in further reformulation and that certainty is required to support this process. Therefore, the government has said that it won't make any more changes to the SDIL during this Parliament.
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