Sugar tax revenue helps tackle childhood obesity
- Also published by:
- HM Revenue and Customs
Soft drinks manufacturers and traders have paid an extra £153.8 million in tax since April, statistics published by HM Revenue and Customs (HMRC) reveal.
The Soft Drinks Industry Levy (SDIL) was introduced in April 2018 and applies to the packaging and importation of soft drinks containing added sugar. It was introduced as part of the government’s initiative to tackle childhood obesity by encouraging manufacturers to reduce the sugar content in their drinks products.
The UK has one of the highest obesity rates among developed countries and soft drinks are still the biggest source of sugar in children’s diets. Revenue collected from the levy will help fund physical education activities in primary schools, the Healthy Pupils Capital Fund and provide a funding boost for breakfast clubs in over 1,700 schools.
Manufacturers had two years to prepare ahead of the introduction of SDIL. While many manufacturers reduced the sugar content in their drinks products, over 450 traders have registered to pay the levy. There are two rates of tax, depending on the sugar content:
- the ‘standard rate’ (18p per litre) applies to drinks with sugar content between 5 grams and up to (but not including) 8 grams per 100ml
- the ‘higher rate’ (24p per litre) applies to drinks with sugar content equal to or greater than 8 grams per 100ml
The Exchequer Secretary to the Treasury, Robert Jenrick, yesterday said:
Today’s figures show the positive impact the soft drinks levy is having by raising millions of pounds for sports facilities and healthier eating in schools, as well as encouraging manufacturers to cut sugar in over half the drinks found in UK stores.
Helping our next generation to have a healthy and active childhood is a priority for us, and I’m pleased to see the industry is playing its part.
Further findings from HMRC’s statistics show:
- since April, over 90% of net liabilities declared by traders were at the higher rate (24p per litre)
- since SDIL was introduced, 85% of gross liabilities were declared as packaged (produced in the UK)
Read the Soft Drinks Industry Levy statistics.
The statistics are broken down by rate of tax (standard and higher), and the origin of goods (imported and packaged). Imported refers to liabilities declared as imported from large overseas producers, and packaged refers to liabilities declared as packaged by traders for themselves and on behalf of large producers.
The 2016 Budget announced funding for a number of programmes linked to the revenue from the Soft Drinks Industry Levy. The funding has been allocated to a number of programmes to support pupil health and well-being which include:
- doubling funding for the primary physical education and Sport Premium to £320 million a year from 2017 - the Department for Education and the Department of Health and Social Care contribute £100 million and £60 million per year to the premium respectively, with the Soft Drinks Levy funding contributing £415 million over the remainder of the current spending review period
- providing £100 million in 2018/19 for the Healthy Pupils Capital Fund
Latest News from
Mansion House dinner speech 2019 - Philip Hammond21/06/2019 14:47:00
The Chancellor's 2019 Mansion House dinner speech, delivered on 20 June 2019.
John Glen delivers speech at the CityUK’s annual conference20/06/2019 15:10:00
John Glen speaks about being the longest serving Economic Secretary since 2010, the successes he has seen the City achieve in that time, and what more can be done to ensure London remains a global financial hub.
Individuals to be protected from 'devastating impact' of problem debt19/06/2019 15:10:00
A new Breathing Space scheme will protect individuals with problem debt, with those in mental health crisis to get further protections while they receive treatment.
Big wins for British businesses as Vice Premier Hu Chunhua visits18/06/2019 15:20:00
Deals between British and Chinese companies worth more than £500 million were announced yesterday, during a visit to the UK by Chinese Vice Premier Hu Chunhua.
Tenth Economic and Financial Dialogue held between the UK and China18/06/2019 13:47:00
The tenth Economic and Financial Dialogue (EFD) between the UK and China took place in London yesterday (June 17).
UK-China EFD sees launch of London-Shanghai Stock Connect17/06/2019 15:20:00
UK listed companies will be able to sell shares in China from today (17 June).
Economic talks to boost UK-China relations11/06/2019 17:08:00
Chancellor announces date of the next UK-China EFD.
Chancellor pushes for international action on tax rules for the digital era10/06/2019 15:25:00
Global tax rules do not reflect the digital age, Chancellor to warn world leaders.