Soft Drinks Industry Levy: initial equality impact assessment
Published 26 November 2020
© Crown copyright 2020
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/soft-drinks-industry-levy--2/soft-drinks-industry-levy-initial-equality-impact-assessment
Project objectives
The Soft Drinks Industry Levy (SDIL) is a new levy that applies to soft drinks containing added sugar.
SDIL is aimed at producers, packagers and importers, and is levied on packagers and importers of these types of drinks.
It will have a lower rate which will apply to added sugar drinks with a total sugar content of 5 grams or more per 100 millilitres and a higher rate for drinks with 8 grams or more per 100 millilitres.
It will not apply to any drink where no sugar is added.
Customer groups affected
The customer groups that will be impacted by the change are:
- producers of soft drinks
- packagers of soft drinks
- importers of soft drinks (mainly small and medium-size enterprises (SMEs))
- intermediaries
- agents
- retailers selling their own brands
- cruise ships
- consumers
What customers will need to do
UK producers, packagers and importers of soft drinks within the scope of the SDIL will incur one-off costs of familiarisation with the new rules and training for staff, registration with HMRC, and developing the required reporting framework to complete tax returns. There will also be on-going costs including completing, filing and paying quarterly returns, keeping appropriate records (including those required to claim the export credit), and amending returns.
Customers will access this service through a digital system hosted via GOV.UK from April 2018.
Assessing the impact
We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act 2010, and the public sector equality duty contained within it, and section 75 of the Northern Ireland Act 1998.
Racial groups
Impact on customers
The SDIL population will be made up of diverse racial groups. We do not anticipate that there will be impacts on customers in these protected characteristic groups.
Disabled and not disabled
Impact on customers
Yes.
Impacts
The SDIL is levied on producers, packagers and importers of soft drinks. The increased cost of production is likely to be passed on to consumers. This may have an impact on certain groups, such as those with Type 1 diabetes and those with a lactose intolerance who use soft drinks to help manage their health conditions.
Whilst the SDIL tax information and impact note (TIIN) published on 5 December 2016 makes reference to Type 2 diabetes, the NHS website states that it is often linked to being overweight or inactive.
It has also been highlighted by charities that there might be an indirect impact on those with phenylketonuria (PKU). Many reformulated brands have used the artificial sweetener aspartame in their products which may be harmful to those with PKU who may not read and/or understand warnings on labels.
Mitigations
Mitigations have been introduced in the form of legislative exclusions for certain soft drinks from the scope of the SDIL. Fruit juice is one such exclusion and is a product that the NHS website recommends for emergency treatment of hypoglycaemia (hypos). Some milk-based drinks, including those with reduced lactose and certain milk substitute drinks, are also not included within the scope of the SDIL.
Existing food labelling regulations which pre-date the introduction of SDIL require products containing aspartame to have the warning ‘Contains a source of phenylalanine’ (GOV.UK) on their labelling. This warning assists those with PKU to avoid buying products that are harmful to them. HMRC is not aware of any scientific studies that indicate the existing warning is inadequate.
Legislative exclusions ensure that those consumers within these equality groups will continue to have access to a range of soft drinks which can be used to manage their health conditions.
Gender
Impact on customers
There is no evidence to suggest that there will be any impacts on those customers within this protected characteristic group.
Gender reassignment
Impact on customers
No impact anticipated, as above.
Sexual orientation
Impact on customers
No impact anticipated, as above.
Age
Impact on customers
No impact anticipated, as above.
Religion or belief
Impact on customers
No impact anticipated, as above.
Pregnancy and maternity
Impact on customers
No impact anticipated, as above.
Marriage and civil partnership
Impact on customers
No impact anticipated, as above.
People with dependents and those without
Impact on customers
No impact anticipated, as above.
Political opinion (for Northern Ireland only)
Impact on customers
No impact anticipated, as above.
People who use different languages (including Welsh Language and British Sign Language)
Impact on customers
Yes. Welsh Language - customers may need assistance in Welsh.
Mitigations
Customers requesting assistance in Welsh will be referred to the Welsh Language unit, as per business as usual and HMRC protocol.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group. None have been identified within the scope of this project.