Chris Davies – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Chris Davies on 2016-06-03.

To ask Mr Chancellor of the Exchequer, how his Department determined the bands for the soft drinks industry levy; and what scientific studies were used in reaching that decision.

Damian Hinds

The new levy will be charged on producers and importers of drinks with added sugar. There will be one rate for drinks with total sugar content above 5g/100ml and a higher charge for drinks with more than 8g/100ml of sugar.

This structure is clear, simple and transparent. It is designed to encourage producers to reformulate their product mix by removing the added sugar content from drinks and helping consumers choose lower and no sugar brands.

The bands have been set to give producers certainty over the next two years before implementation so they can gradually reformulate their products. Companies have until April 2018 before the levy comes into force to reformulate and if they do, they can pay less.