Labour's Milkshake Tax: Sugar Levy Expansion Planned
Labour's Milkshake Tax: Sugar Levy Expansion Planned

The UK government has announced plans to extend the sugar tax to bottled milkshakes and pre-packaged lattes, as part of a broader crackdown on sugary drinks. Health Secretary Wes Streeting confirmed the changes in the Commons on Tuesday, stating that the soft drinks industry levy (SDIL) will now cover milk-based drinks and more fizzy drinks.

Currently, the levy applies to drinks with 5g of sugar per 100ml. After a public consultation, the threshold will be lowered to 4.5g per 100ml, potentially affecting hundreds more products. The exemption for milk-based drinks will also end, meaning bottled milkshakes, flavoured milk, and milk-substitute drinks will be included.

Streeting said: "This government will not look away as children get unhealthier and our political opponents urge us to leave them behind." The changes will not take effect until 1 January 2028, following another consultation, giving drinks makers two years to reformulate.

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The levy, introduced by George Osborne in 2016, has been deemed a success, with almost 90% of drinks now containing less sugar than the tax threshold. The expansion is expected to raise up to £45m a year for the Treasury.

Dentists welcomed the move. Dr Charlotte Eckhardt of the Royal College of Surgeons of England called it a "significant victory for public health", noting that tooth decay remains the leading cause of hospital admissions among five- to nine-year-olds in England.

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