The UK government is set to revise the Soft Drinks Industry Levy (SDIL), introducing an inflation tie and reviewing its scope to reduce sugar in soft drinks. The SDIL, introduced in 2018, has been effective in driving product reformulation, leading to a significant reduction in sugar in soft drinks. The government plans to adjust the rates annually to account for inflation and consider lowering the 5g sugar threshold, increasing the rate for highly sugary drinks, and possibly extending the SDIL to milk-based and alternative drinks. These changes, along with the thresholds for the tax, will be decided after Budget 2025, with potential changes to be implemented in April 2026.