UK to Extend Sugar Tax to Milkshakes and Lattes in 2028
The government has confirmed that pre-packaged milkshakes, flavoured milks and sugary lattes will face a new tax from 2028, bringing them under the same rules that already apply to fizzy drinks. Health Secretary Wes Streeting said the move is designed to push manufacturers to cut sugar and help tackle rising childhood obesity.
Streeting told MPs that "we're expanding the soft drinks industry levy to include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks" and that the sugar threshold will drop from 5g to 4.5g per 100ml. The tax covers drinks sold in bottles, cans and cartons, but not coffees or milkshakes made fresh in cafés.
Milk-based drinks were previously exempt, but the updated rules will include a “lactose allowance” so naturally occurring milk sugars aren’t unfairly counted. Plain unsweetened milk and milk alternatives remain excluded.
Some well-known products could be affected — for example Starbucks’ iced coffees, Shaken Udder shakes, Yazoo, and certain Alpro drinks. Depending on their sugar content, drinks will fall into either the lower levy band (£1.94 per 10 litres) or the higher one (£2.59 per 10 litres).
Streeting repeated his warning to Parliament: "This government will not look away as children get unhealthier. 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.”
Ministers point to the impact of the 2018 soft drinks levy, which pushed manufacturers to cut sugar and contributed to a 46% drop in levels across fizzy drinks, as the prompt for expanding to milk-based drinks. They expect similar reformulation here, saying companies could avoid the charge by reducing sugar before the rules come into force.
Critics, including some Conservative MPs and Reform UK’s Nigel Farage, argue the tax is government overreach, with Farage saying he is "sick to death of a government telling us how we should live." But the government says people’s overall sugar intake is still about twice the recommended maximum and insists the policy will benefit public health and reduce pressure on the NHS.
The change is set to appear in Chancellor Rachel Reeves’s Budget, which will also include several smaller tax rises as part of a broader effort to plug a major public finances gap.
