
The Soft Drinks Industry Levy is to be extended to cover milkshakes and dairy-based drinks in a fresh attempt to tackle the “obesity crisis”, the government has announced.
Ahead of the Autumn Budget tomorrow, Health secretary Wes Streeting has confirmed that the threshold at which the levy starts will be lowered from 5g of sugar per 100ml to 4.5g of sugar per 100ml.
Manufacturers have until January 2028 to reduce sugar in their drinks or face new charges which would add £1 billion in health and economic benefits, said the government.
The levy will be extended to pre-packaged milk-based drinks such as milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks and ready-to-drink coffees such as lattes.
Milk-based drinks have previously been exempt from the levy because they contain calcium, which is encouraged in children and young people’s diets.
However, the government has removed this loophole due to some milk-based drinks containing “as much added sugar as fizzy drinks”, it said.
Plain, unsweetened milk and milk-alternative drinks are not and will not be included, it said.

The average sugar content of drinks has fallen almost 50% since the tax was introduced in 2018, according to the government.
“An unhealthy start to life holds kids back from day one, especially those from poor backgrounds like mine,” said Streeting.
“The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further.
The new plans are expected to reduce daily calorie intake by around 4 million in children and 13 million in adults across England. This could prevent almost 14,000 cases of adult obesity and nearly 1,000 cases of childhood obesity, claimed the government, delivering almost £1b in health and economic benefits.
Streeting added:“A healthier nation will mean less pressure on our NHS, a healthier economy, and a happier society. It’s a simple change that is part of this government’s mission to give every child a healthy start to life.
“This is a levy on manufacturers and importers, which has led to companies acting by halving sugar content in popular drinks to avoid the tax. The government expects companies to do the same with the extension.”
England’s chief medical officer Professor Sir Chris Whitty said: “The existing Soft Drinks Industry Levy has already substantially reduced the amount of sugar in shop-bought products, helping slow the increase in childhood obesity and bring down hospital admissions for tooth extractions among young children.”
The measures are part of the government’s plan to tackle obesity and prevent heart disease, stroke, and cancer, including:
- The Healthy Food Standard to make the average shopping basket of goods healthier
- Banning junk food adverts before the 9pm watershed.
- Banning the sale of high-caffeine energy drinks to children aged under 16
- Giving local authorities powers to stop fast food shops setting up outside schools
Katharine Jenner, executive director at Obesity Health Alliance, said ending the exemption for sugary milkshakes and bringing more sugary soft drinks into the levy is a “sensible and long-overdue” step to protect children’s health.
“The Soft Drinks Industry Levy has already removed billions of teaspoons of sugar from the nation’s diet without harming industry growth, proving that clear, consistent rules are effective,” said Jenner.
Helen Kirrane, head of policy, campaigns & mobilisation at Diabetes UK, said: “With cases of type 2 diabetes continuing to rise at an alarming rate, particularly in younger people, we need bold action to cut unnecessary sugar from food and drink.
“Expanding it to include milk-based and milk-alternative drinks, which can contain large amounts of hidden sugar, is a welcome step forward. We know that, for many people, it can be overwhelming to navigate such a wide range of products, and it’s not always clear what is good for us. This change will help ensure the healthier choice is the easier choice.”


















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