Measure
The scope of the soft drinks industry levy (SDIL) will increase to include drinks with an added sugar content equal to or greater than 4.5g per 100ml. The levy will also now include milk-based and milk-alternative drinks (e.g. milkshakes, ready-to-drink coffees etc.), but not ‘open top’ drinks sold in cafes or restaurants.
The levy will now apply as follows:
Drinks containing between 4.5g and 7.9g per 100ml will be subject to a levy of £1.94 per 10 litres (19.4p per litre); and
Drinks above 8g per 100ml will remain subject to a levy of £2.59 per 10 litres (25.9p per litre).
Manufacturers and importers of drinks which fall within scope of the levy.
These reforms will be implemented on 1 January 2028.
The expansion of the levy to include milk-based drinks and drinks with a sugar content of 4.5g per 100ml and above is intended to try to change consumer behaviour and, as the government notes, support wider anticipated health and economic benefits.