Pre-packaged milkshakes and lattes are set to be included in the sugar tax, Health Secretary Wes Streeting is expected to announce to the Commons on Tuesday. The move will end the exemption for milk-based drinks from the existing soft drinks industry levy (SDIL), though drinks made in cafes and restaurants will not be affected.
The change follows a government consultation that considered removing the exemption for milk-based drinks while introducing a “lactose allowance” to account for natural sugars in milk. Ministers have also looked at removing the exemption for milk substitute drinks with added sugars beyond those from the principal ingredient, such as oats or rice.
The sugar tax, introduced by the Conservative government in 2018, applies to pre-packaged drinks sold in cans and cartons in supermarkets. The government is also considering reducing the maximum sugar threshold from five grams to four grams per 100ml, after which the levy applies.
Health minister Karin Smyth told Times Radio that “obesity is the major challenge of our health service for this generation”. She emphasised that tackling obesity, rather than raising revenue, is the primary goal, and noted that the existing levy has already led to a 46% average reduction in sugar in targeted soft drinks between 2015 and 2020.
According to the Treasury, children’s sugar intake in the UK is more than double the recommended maximum of 5% of energy from free sugar. The government has also announced measures to reduce junk food advertising to protect young people from obesity.
