Sugar: Taxation

Treasury written question – answered on 4th September 2018.

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Photo of Royston Smith Royston Smith Conservative, Southampton, Itchen

To ask Mr Chancellor of the Exchequer, how much revenue is projected to be raised in the 2018-19 financial year from the sugar tax.

Photo of Royston Smith Royston Smith Conservative, Southampton, Itchen

To ask Mr Chancellor of the Exchequer, how much revenue has been collected since the introduction of the soft drinks industry levy; and that money has been spent on.

Photo of Robert Jenrick Robert Jenrick The Exchequer Secretary

As set out in the Office for Budget Responsibility’s Economic and Fiscal Outlook in March 2018, the Soft Drinks Industry Levy (SDIL) is expected to accrue £240m in 2018-19.

The figure for the amount of revenue collected since the introduction of the SDIL was published on 21st August in the HMRC Tax & NIC Receipts publication at the following link:

https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

Note that these figures published on a receipts basis, with first SDIL payments due by 30th July 2018.

The 2016 Budget announced funding for a number of programmes linked to the revenue from SDIL. The Department for Education will receive £575 million during the current spending review period. The funding has been allocated to a number of programmes to support pupil health and wellbeing which include:

  • Double funding for the primary physical education and Sport Premium to £320 million a year from 2017. The Department for Education and the Department of Health contribute £100 million and £60 million per year to the premium respectively, with the Soft Drinks Levy funding contributing £415 million over the remainder of the current spending review period.
  • Provide £100 million in 2018/19 for the Healthy Pupils Capital Fund.
  • Provide up to £26 million to kick-start or improve breakfast club provision in over 1,700 schools.

Expected revenue from the levy during the Spending Review period is £485 million for the UK as a whole. The total funding provided for these programmes in England is £575 million.

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