Milkshake, iced-coffee makers face new sugar tax in UK

By Aysu Bicer

LONDON (AA) - Milkshakes and pre-packaged milky coffees will be pulled into the government’s sugar tax from 2028, as ministers move to widen the levy in an effort to curb rising childhood obesity.

Health Secretary Wes Streeting confirmed to Parliament on Tuesday that the existing soft drinks industry levy will be extended to milk-based products, with the sugar threshold lowered from 5g to 4.5g per 100ml.

Streeting said the measure would “support the health of the population and help reduce the burden on public health services.”

He added: “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.”

Milk-based drinks were originally exempt because of their calcium content, but officials say they now contribute significantly to young people’s sugar intake.

The levy will apply only to pre-packaged products, not drinks prepared in cafes, and will include a “lactose allowance” so that naturally occurring milk sugars are discounted.

Plant-based alternatives such as oat, soya and almond drinks will be taxed on the same basis.

Ministers say the original levy, introduced in 2018, prompted a 46% cut in sugar content in fizzy drinks and helped shift consumer habits.

Manufacturers may choose to absorb the cost, reduce portion sizes or reformulate products to avoid the charge.

The government says any price changes would likely influence buying behavior as the extended levy comes into force.