Sugar tax changes recappedpublished at 15:44 GMT
Health Secretary Wes Streeting announced in the Commons earlier this afternoon the government was making two key reforms to the so-called sugar tax ahead of tomorrow’s Budget. Let’s break down the changes.
What is the sugar tax?
It sounds all-encompassing, but the “sugar tax” – or Soft Drinks Industry Levy – currently only applies to packaged drinks that contain at least 5g of added sugar per 100ml. The two rates that apply are 19.4p per litre on drinks with a sugar content between 5g and 8g; and; 25.9p per litre on drinks with a sugar content equal to or greater than 8g per 100ml.
What changes are coming?
The threshold will be reduced to 4.5g sugar per 100ml, and packaged milk-based drinks with added sugar will be included. The government says “open-cup” drinks prepared in cafes and bars will remain out of scope, as will plain cow’s milk.
Why and when is this happening?
Streeting put tackling obesity at the heart of the changes, telling the Commons it robbed children “of the best possible start in life” and set up the poorest people in the UK “for a lifetime of problems”. The tax is expected to bring in up to £45m annually.
The changes are set to be introduced from 1 January 2028, which the government says is to give producers time to change their recipes.
What has been the response so far?
The British Soft Drinks Association says the lowered threshold will be costly for business, however expressed relief it wasn’t reduced to 4g per 100ml, which the government explored. Sarah Woolnough, chief executive of health think-tank The King’s Fund, has described the change as “common sense”.
