Autumn Budget Announcement
Today, the Chancellor has presented the Labour government's first budget to Parliament in 14 years, announcing an uprating of the soft drinks industry levy. This measure confirms that:
- the lower rate of the Soft Drinks Industry Levy will increase from 18 pence per litre to £1.94 per 10 litres
- the higher rate will increase from 24 pence per litre to £2.59 per 10 litres.
The increases will take effect from the 1 April 2025. More detail can be found on the government website.
We welcome the government’s recent decision to increase the levy in line with inflation. This move is a positive yet obvious first step towards tackling the pressing health issues associated with poor diets, which are increasingly affecting our communities.
Increasing the soft drinks levy is a proven strategy to reduce sugar intake. Since its introduction, the levy has not only encouraged manufacturers to reformulate their products, but it has also meaningfully shifted consumer choices away from high-sugar drinks. This tax adjustment, which aligns with inflation, ensures the continued effectiveness of the levy by maintaining its economic impact.
While we applaud this development, we also recognise that this measure alone is not sufficient to address the broader challenges of dietary health. The persistence of high rates of obesity, heart disease and other related diseases underscores the need for a more comprehensive approach to dietary health policies.
Sonia Pombo, Head of Impact and Research at Action on Salt says: "For too long, the food and drink industry has had a disproportionate influence on health policies, often prioritising profit over the well-being of consumers. We now urge the government to consider additional, robust measures, such as introducing salt and sugar taxes on food manufacturers – a recommendation strongly supported by the recent report, published by the House of Lords Food Diet and Obesity Committee. By broadening the scope of health-focused fiscal policies, we can create a more sustainable and impactful improvement in public health."
