Sugar Tax

Dear constituent,

Thank you for contacting me about the revenue raised by the Soft Drinks Industry Levy (sugar tax).

I agree everyone must have access to healthy, nutritious and sustainably produced food, and I have long supported action to protect children’s health.

The sugar tax came into effect across the UK in April 2018. It was introduced to incentivise companies to reduce the sugar in the drinks they sell. It is generally considered to have been effective in encouraging the reformulation of products.

When this policy was first announced, it was outlined that in England, revenue from the levy would be invested in programmes to reduce obesity and encourage physical activity and balanced diets for school age children.

On 15 October 2020, the UK Government said funding from the sugar tax has been used to double the Primary PE and Sport Premium, with levy revenue contributing an additional £160 million a year towards the total of £320 million. It noted £100 million was used for the Healthy Pupils Capital Fund in the 2018-19 financial year.

Funding of nearly £22 million was allocated, between 2017 and 2019, to an Essential Life Skills programme to enable disadvantaged children and young people to participate in regular extra-curricular activities. In addition, up to £35 million from the Soft Drinks Industry Levy is being invested to fund the National Schools Breakfast Programme in England over three years from March 2018.

On 4 December, a Treasury Minister said that while there is no formal link between sugar tax revenues and individual programmes, the UK Government will continue to invest in supporting public health and tackling obesity.

I know groups like Sustain have raised concerns about how revenue from the sugar tax is spent and have long called on the UK Government to ring-fence the income to invest in programmes for children’s health. I hope these calls will be carefully considered.

I can assure you that I support action to tackle childhood obesity. For example, I would like to see the sugar tax extended to milk-based drinks. I will also continue to back efforts to ensure access to healthy food for children.

Thank you once again for contacting me and for sharing your views about this important issue.

Yours sincerely,

Peter Dowd MP