Major Expansion of Sugary Drinks Tax Announced
In a significant move to tackle the nation's obesity crisis, the Government is preparing to widen the scope of the Soft Drinks Industry Levy. Health Secretary Wes Streeting is set to announce plans that will see the tax threshold lowered, bringing a far greater number of sugary beverages under its charge for the first time.
What Changes Are Being Made?
The key change involves reducing the sugar threshold from 5g to 4.5g of sugar per 100ml. This technical adjustment means that many drinks which previously escaped the levy will now be subject to it unless manufacturers proactively reduce their sugar content.
Perhaps the most notable shift is the decision to remove the exemption for milk-based drinks. This will see milkshakes and pre-packaged lattes and other coffee drinks included in the tax for the first time since the levy's introduction in 2018.
The new rules are scheduled to come into effect from January 2028, giving producers a clear timeline to reformulate their recipes.
The Impact on Public Health and Industry
This bold policy is projected to have a substantial impact on the nation's health. It is estimated that the changes could remove a staggering 17 million calories from the UK's daily intake. The long-term goal is to reduce obesity-related illnesses, thereby alleviating pressure on the overstretched NHS.
The existing two-tier tax system will remain, but will apply to more products:
- Drinks with between 5g and 8g of sugar per 100ml are taxed at 18p per litre.
- Beverages with more than 8g of sugar per 100ml face a higher rate of 24p per litre.
While health advocates are likely to welcome the move, it is expected to spark significant opposition from the soft drinks industry, which has consistently voiced concerns about the financial burdens on businesses.
A Drive for a Healthier Generation
A Whitehall source underscored the government's ambition, stating, "Wes has set the ambition of making sure children today are part of the healthiest generation that ever lived." The source highlighted the disproportionate impact of poor health on children from the most deprived backgrounds and the Secretary of State's determination to ensure every child has a healthy start in life.
This announcement forms part of the broader context of Chancellor Rachel Reeves's upcoming Budget, where a series of smaller tax-raising measures are anticipated to address the public finances.
