Changes to 'sugar tax' could damage business confidence

09 Sep 2025

UK soft drinks producers have warned Chancellor Rachel Reeves that proposed changes to the Soft Drinks Industry Levy will damage business confidence and have 'severe economic consequences for the industry'.

The Chancellor recently outlined plans to 'strengthen' the Levy. The main change will be to lower the sugar content threshold at which the Levy kicks in from its current level of 5g per 100ml to 4g per 100ml.

In a letter to Prime Minister Keir Starmer, the British Soft Drinks Association (BSDA) stated that the changes could 'weaken the long-term tax take and sacrifice tomorrow's growth for modest revenue gains today'.

Commenting on the matter, a spokesperson for the government said: 'This is a pro-business government, opening up new markets for producers through trade deals and delivering the stability they need to invest.

'The Levy has halved the amount of sugar in drinks and helped to tackle child obesity. The proposed changes update a threshold that was set nearly a decade ago, and are intended to encourage producers to continue reducing their sugar content.'