Tthe Department of Health and Social Care issued the response to its consultation, which ran from 28 April to 21 July 2025. This consultation highlighted the need for reforming the soft drinks industry levy (SDIL) to encourage additional reductions in sugar content across soft drinks.
The UK Government carefully reviewed over 170 responses from stakeholders during the consultation period.
Concerns had been raised regarding the potential extension of the levy since the original consultation was initiated.
In response to the feedback, the Government has decided to lower the SDIL threshold from 5g of total sugars per 100ml to 4.5g per 100ml.
This adjustment aims to achieve a balance between supporting health objectives and creating an environment where the soft drink sector can continue to thrive and invest. The Government has also acknowledged the technical challenges highlighted regarding reformulating products to meet the new standards of below 4g sugar per 100ml.
Moreover, the plan includes removing the current exemption for pre-packaged milk-based drinks with added sugars, while introducing a ‘lactose allowance’ to account for naturally occurring sugars in milk.
To encourage sugar reduction in recipes, the Government will implement a tax incentive for producers of these milk-based drinks.
Additionally, the Government will eliminate the exemption for milk substitute drinks that contain added sugars. These plant-based alternatives will fall under the SDIL if they contain 4.5g or more of total sugars per 100ml. However, milk substitutes without added sugars will remain exempt.
The Government has taken into account industry input regarding challenges associated with the proposed implementation date of 1 April 2027.
In response, the Government stated: “The government also acknowledges that the soft drinks industry will be working to deliver the new Deposit Return Scheme up to and within 2027. Taking this into account, the government has extended the proposed implementation date by 9 months to 1 January 2028. This will allow over 2 years for reformulation from the point at which policy is confirmed (now).”
