It is time to build on the success of the Soft Drinks Industry Levy (SDIL) for public health. The Recipe for Change campaign’s representation to the Autumn Budget 2024 recommends that HM Treasury reviews the best mechanisms for healthier food and drink production beyond the Soft Drinks Industry Levy (SDIL), as well as maintaining and extending SDIL. This includes a review of how the current SDIL model could be raising more revenue than it currently is.

Poor population health is increasingly damaging our economy, reducing our participation in the workforce, and increasing the need for medical attention, social care and welfare support.

The new cross-government Health Mission has rightly identified healthy weight and obesity as a key focus for action as part of the “prevention to ill-health" workstream.

Introducing levers to incentivise production of healthier food and drink, including reformulation, is crucial for improving public health.

Our recommendations for the Autumn 2024 Budget are:

1. Issue an HM Treasury and Department for Health and Social Care joint call for evidence on measures to incentivise healthier food and drink production beyond the Soft Drinks Industry Levy (SDIL), including use of further financial levers.
2. Announce the extension of SDIL to include sugary milk and alternative milk-based drinks, and to open cup drinks across the whole soft drinks category, to be introduced in April 2025.
3. Strengthen the SDIL to incentivise further product reformulation and increase revenues for investment in children’s health:
   • Announce an intention to uprate the liability under the Levy starting no later than April 2025.
   • Initiate a review of the current tiered approach to the Soft Drinks Industry Levy, and options for incentivising further sugar reduction and/or maximising its revenue potential.
   • Maintain a stated commitment to ensuring revenues from SDIL and any further healthy food and drink levies support government investment in programmes to support children’s health.