# Soft Drinks Industry Levy url: https://whereyourmoneygoes.co.uk/soft-drinks-levy/ updated: 29 September 2026 licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources. publisher: [Tekstak Ltd](https://tek-stak.co.uk) # Soft Drinks Industry Levy Last updated 29 September 2026. Figures refresh every night. [How each figure is worked out](/methodology/). **A charge on producers of sugary soft drinks, set at two levels depending on sugar content, designed to make them reformulate rather than to raise money.** Producers and importers. Most absorbed it or reformulated rather than passing it on, so many drinkers never paid it. It raised **£354m** in 2025–26, which is 0.0% of everything HMRC collects and 0.01% of the economy. That is up £27m (8.3%) on the year before. Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk). ## Key figures - £354mRaised in 2025–26 ▲ - 0.0%Of everything HMRC collects ▬ 2025–26 - 0.01%Of the whole economy (GDP) ▬ 2025–26 - -17.9%In real terms, against the 2019–20 peak Adjusted for inflation with the GDP deflator As of 6 April 2025 Sources: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk), [HM Treasury](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp). ## What is the short version? - **How big:** £354m in 2025–26, 0.0% of everything HMRC collects; after inflation, 12% more than in 2018–19. - **Latest change, 2018:** Receipts come in far below the original forecast, which the government presents as the policy succeeding rather than failing. - **Where it goes:** School sport and breakfast clubs, originally, like almost every tax: it is not earmarked. - **The argument:** It demonstrably cut the sugar content of drinks on sale; against that, it singles out one product while confectionery and cakes are untouched. ## How much does it raise? **Soft Drinks Industry Levy receipts, cash and real terms** **The numbers behind this chart** | Financial year | Cash | Real, 2025-26 prices | | --- | --- | --- | | 2018–19Details | £240m | £315m | | Real, 2025-26 prices£315m | | | | 2019–20Details | £337m | £431m | | Real, 2025-26 prices£431m | | | | 2020–21Details | £299m | £364m | | Real, 2025-26 prices£364m | | | | 2021–22Details | £334m | £405m | | Real, 2025-26 prices£405m | | | | 2022–23Details | £355m | £402m | | Real, 2025-26 prices£402m | | | | 2023–24Details | £338m | £364m | | Real, 2025-26 prices£364m | | | | 2024–25Details | £327m | £338m | | Real, 2025-26 prices£338m | | | | 2025–26Details | £354m | £354m | | Real, 2025-26 prices£354m | | | Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk), [HM Treasury](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp). **How "real terms" is worked out** Real terms use HM Treasury's GDP deflator, rebased to 2025-26 prices. That is the measure the Treasury and the OBR use for public finances; the consumer price index is the right one for a shopping basket, not for the size of the state. ## How does it work? Everyone calls it the sugar tax. It is charged on the producer, not at the till, and only on soft drinks above a sugar threshold, with a higher rate above a second threshold. Milk-based drinks, pure fruit juice and drinks below the lower threshold are outside it. The design was unusual and deliberate: it was announced two years before it took effect, giving manufacturers time to reformulate. Most did. Reformulation, not revenue, was the point. ## How has it changed? How it got here, and why each change was made: - **2016**Announced, with a two-year delay before it applies, explicitly so producers can change their recipes. - **2018**Takes effect. Many major brands have already cut sugar below the threshold. - **2018**Receipts come in far below the original forecast, which the government presents as the policy succeeding rather than failing. ## Where does the money go? **School sport and breakfast clubs, originally.** When announced, the levy was presented as funding school sport, breakfast clubs and healthy-pupil programmes in England. In practice it went into the Consolidated Fund like everything else and the school programmes were funded from general spending. The link was political framing rather than an accounting rule. Because it is not earmarked, the only honest way to show what it pays for is by proportion. If soft drinks industry levy receipts of £354m were spent in the same proportions as all public spending in 2025-26, they would break down like this. It is an illustration of scale, not a statement about where those particular pounds went. **If £354m of soft drinks industry levy were spent like all public money in 2025-26** - 1. Social protection, including the state pension £118m 33.2% of spending - 2. Health £74m 21% of spending - 3. Debt interest £38m 10.6% of spending - 4. Education £36m 10.2% of spending - 5. Economic affairs, including transport £27m 7.7% of spending - 6. Defence £19m 5.3% of spending - 7. Public order and safety £16m 4.5% of spending - 8. General public services £10m 2.9% of spending - 9. Housing and community £6m 1.8% of spending - 10. Environment £6m 1.6% of spending - 11. Culture, media and sport £4m 1.2% of spending Spending shares from HM Treasury’s Public Expenditure Statistical Analyses. An illustration of scale, not where these particular pounds went. **Show as a table** | Name | Equivalent share of soft drinks industry levy | | --- | --- | | 1. Social protection, including the state pension | £118m | | 2. Health | £74m | | 3. Debt interest | £38m | | 4. Education | £36m | | 5. Economic affairs, including transport | £27m | | 6. Defence | £19m | | 7. Public order and safety | £16m | | 8. General public services | £10m | | 9. Housing and community | £6m | | 10. Environment | £6m | | 11. Culture, media and sport | £4m | See [for every £100 of tax](/for-every-100-pounds-of-tax/) for the full picture. ## Does it change what people do? The best-evidenced behavioural tax in the UK. Studies found a large fall in the sugar content of soft drinks on sale, and a measurable fall in sugar bought from soft drinks per household, without a fall in soft drink volumes. Announcing it in advance and taxing the producer rather than the shopper is widely credited for that, and it is now cited internationally as a model. [When a tax rise stops raising money](/when-tax-rises-lose-revenue/) looks at the cases where the effect has been large enough to move the revenue. ## What are the arguments? ### The case for it - It demonstrably cut the sugar content of drinks on sale. - Taxing producers with notice prompted reformulation rather than just higher prices. - Sugar consumption imposes costs on the NHS. - It achieved its aim while raising less money, which is the right way round for a health tax. ### The case against - It singles out one product while confectionery and cakes are untouched. - Some reformulation substituted sweeteners whose long-term effects are debated. - It is regressive in so far as it is passed on. - The earmark to school sport turned out not to be real. Both columns are set out as their strongest case, not as a preferred answer and a strawman. See [how this site handles contested questions](/neutrality/). ## Common questions What is the sugar tax and did it work? A charge on producers of sugary soft drinks, set at two levels depending on sugar content, designed to make them reformulate rather than to raise money. Producers and importers. Most absorbed it or reformulated rather than passing it on, so many drinkers never paid it.How much does soft drinks industry levy raise? £354m in 2025–26, which is 0.0% of everything HMRC collects.Where does soft drinks industry levy go? School sport and breakfast clubs, originally. When announced, the levy was presented as funding school sport, breakfast clubs and healthy-pupil programmes in England. In practice it went into the Consolidated Fund like everything else and the school programmes were funded from general spending. The link was political framing rather than an accounting rule. ## Use this data The figures belong to the bodies that published them and are used under their terms, listed in [Sources for this page](#sources); most are Crown copyright under the Open Government Licence. Only our own words, analysis, charts and derived calculations are ours, published under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/): reuse them, including commercially, if you credit [Tekstak Ltd](https://tek-stak.co.uk) and link back to this page. ### Download - [Soft Drinks Industry Levy receipts by financial year (CSV)](/data/receipts-soft-drinks-levy.csv) [JSON](/data/receipts-soft-drinks-levy.json) HM Revenue and Customs: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) - [Total HMRC receipts by financial year (CSV)](/data/receipts-total.csv) [JSON](/data/receipts-total.json) HM Revenue and Customs: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) - [All data, field definitions and licences](/data/) ### Embed the live figure Paste this into your page. It updates itself every night and links back here. Embed code ## Sources for this page | Source | Publisher | Figures as of | Updated | Licence | | --- | --- | --- | --- | --- | | [HMRC tax receipts and National Insurance contributions for the UK](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk) | HM Revenue and Customs | the 2025–26 financial year | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [GDP deflators at market prices, and money GDP](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp) | HM Treasury | the 2025–26 financial year | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/). ## Related pages - [Next in this section: Betting and gaming duties](https://whereyourmoneygoes.co.uk/betting-and-gaming-duty/) - [How much are NHS prescription and dental charges, and are they free anywhere?](https://whereyourmoneygoes.co.uk/nhs-prescription-dental-and-optical-charges/) - [How much of my energy bill is tax?](https://whereyourmoneygoes.co.uk/tax-on-energy-bills/) - [Can I download and reuse this data?](https://whereyourmoneygoes.co.uk/data/) ## More from this publisher - [UK tax calculators](https://howlongisit.co.uk) Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.