Out-Law News 2 min. read
05 Nov 2024, 4:18 pm
The UK government has announced an increase in the rates of the soft drinks industry levy (SDIL), in a significant move to combat obesity and promote healthier lifestyles.
During the autumn budget, Rachel Reeves announced that both the lower and higher rates of the levy will increase each year over the next five years. The adjustment reflects a 27% rise in the consumer price index (CPI) from 2018 to 2024. Starting from 1 April 2025, the rates will be further adjusted annually based on the CPI.
The current rate of 18p per litre will be recalibrated to £1.80 per 10 litres. The annual increase will be spread equally over the five-year period, translating to a 10p and 13p per 10 litres increase per year for the lower and higher rates, respectively.
This decision not only aims to maintain the levy’s effectiveness by adjusting it in line with inflation, but also to incentivise the reduction of added sugar in soft drinks. The objective of the SDIL is to support the Labour government’s efforts to tackle obesity alongside other recommendations and restrictions to promote healthier food and drink choices. The government has also announced a levy review, which aims to identify opportunities to improve the SDIL’s effectiveness at reducing sugar in soft drinks. In particular, the review will look at whether the current exemptions for milk-based and milk substitute drinks should be removed.
A call to uprate the SDIL was made in the House of Lords food, dietary and obesity committee’s “Recipe for health: a plan to fix our broken food system” (181 pages / 2.8 MB). This uprating is only one of the recommendations made, however, with the “recipe for health” calling for the government to do much more now to regulate high fat, salt and sugar (HFSS) foods.
The report advocates for the introduction of mandatory health targets for food manufacturers to reduce levels of fat, salt, and sugar in their products. Building on the SDIL, the committee also recommends expanding reformulation programmes to cover a wider range of food products, encouraging manufacturers to produce healthier options. The report further suggests the implementation of additional health taxes on foods high in fat, salt and sugar, similar to the SDIL, to further discourage the consumption of unhealthy foods.
The committee called for stricter regulation on the advertising of HFSS foods, particularly during times when children are likely to be watching television. Whilst welcoming the 1 October 2025 bans on junk food advertising online and on television before the 9pm watershed, the report states this that does “not go far enough”. According to the report, a total ban on advertising, across all media, both of HFSS food and drink and by businesses that fail to reach healthy sales targets is required. The 1 October 2025 restrictions will prohibit advertisements for HFSS products on TV and on-demand programme services between 5:30am and 9pm, as well as applying an outright ban on paid-for online ads for such products aimed at UK users.
Additionally, the report emphasises the need for creating healthier food environments through measures such as food labelling, restrictions on promotions of unhealthy foods, and incentives for retailers to offer healthier options.
As these initiatives take effect, they are expected to drive significant changes in the food and beverage industry, aiming to ultimately improve the health of the UK population.