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Manufacturers will have to pay the new tax or change their products to fall under the threshold.
Jane KirbyTuesday 25 November 2025 12:56 GMT
open image in galleryPre-packaged milkshakes and lattes will come under the sugar tax (Alamy/PA) (Alamy/PA)
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Pre-packaged milkshakes and lattes will be subject to the sugar tax, the Health Secretary has announced.
Wes Streeting told the Commons on Tuesday the Government will end the exemption for milk-based beverages from the existing tax on sugary drinks.
The move will affect packaged milkshakes and coffees, but not drinks made on site in cafes and restaurants.
Mr Streeting told MPs: “Obesity robs children of the best possible start in life, hits the poorest hardest, sets them up for a lifetime of health problems and costs the NHS billions.
“So I can announce to the House, we’re expanding the soft drinks industry levy to include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks.”
Mr Streeting told MPs the Government would reduce the maximum amount of sugar allowed in drinks to 4.5g of sugar per 100ml.
“Mr Speaker, this Government will not look away as children get unhealthier, and our political opponents urge us to leave them behind,” he said.
It follows a Government consultation on the issue looking at removing the exemption for milk-based drinks.
The exemption for milk substitute drinks with “added sugars” beyond those sugars derived from the principal ingredient, such as oats or rice, was also examined.
The sugar tax, also known as the soft drinks industry levy (SDIL), is a tax on pre-packaged drinks such as those sold in cans and cartons in supermarkets.
It applies to manufacturers and was introduced by the Conservative government in 2018 to help drive down obesity, including among children.
According to the Treasury, children’s sugar intake in the UK is more than double the recommended maximum of no more than 5% energy from free sugar.
The existing levy has led to a 46% average reduction in sugar between 2015 and 2020 for those soft drinks that were to be brought under the rules.
Health minister Karin Smyth told Times Radio on Tuesday that “obesity is the major challenge of our health service for this generation”.
