Measure
The lower and higher rates of soft drinks industry levy (SDIL) will be increased, over the next five years, to reflect the 27% CPI inflation between 2018 and 2024. Annual rate increases will take place on 1 April, starting on 1 April 2025, and will also reflect future yearly CPI increases.
The government is also undertaking a review of the current SDIL sugar content thresholds and the exemptions for milk-based and milk substitute drinks.
UK producers of soft drinks, importers of soft drinks, retailers of soft drinks and consumers who buy soft drinks in the UK.
The SDIL rates will increase annually from 1 April 2025.
With respect to the review, HM Treasury and HMRC officials will meet with experts and interested parties from December 2024, and the review will conclude in spring 2025. The government expects to enact any changes to the SDIL following Budget 2025.
This is the first time the rates will increase since SDIL was introduced in 2018. It will be interesting to see the result of the review of the current exemptions for milk and milk substitutes.