The hon. Lady makes a valid point. When we announced the policy, we said that we would consider milk-based sugary drinks in 2020, which is when more information, including Public Health England data, will be available to inform that decision. We have reiterated that commitment, so there will be a review in just over a year, which could lead to such a decision, although we have no plans to extend the levy at this moment.

The changes made by the clause will help to provide a proportionate and fair penalty regime and to drive compliance. The changes will affect only soft drinks industry levy-registered businesses that do not submit a quarterly return and payment by the due date. Furthermore, although the clause gives us the powers to act, at present there is no evidence of fraud or non-compliance with the soft drinks industry levy on any material scale.

Clause 67 makes changes to amend section 1 of the Isle of Man Act 1979, to add the soft drinks industry levy to the list of common duties. It will ensure that the movement of liable soft drinks between the UK and the Isle of Man will not be seen as either an import or an export under the levy, as long as the levy rates of the UK and the Isle of Man remain aligned. This change will have effect from 1 April next year.

The changes made by clause 67 will implement a change to the soft drinks industry levy legislation, meaning that the movement of liable soft drinks will not be seen as an import or export. Businesses liable to pay the levy on liable soft drinks packaged in the UK will no longer be able to claim an export credit when those drinks are moved to the Isle of Man. The changes will also help to reduce the administrative burden on businesses that wish to move their liable drinks from the Isle of Man to the UK mainland, by removing the requirement to register for the levy as importers. The clause is necessary as it ensures that movements of liable soft drinks between the UK and the Isle of Man under the levy are treated in the same way as movements of goods in other taxes and duties. I commend clauses 66 and 67 to the Committee.