Tue, 25 Nov 2025

Tue, 25 Nov 2025 Milkshakes and lattes to face sugar tax in UK

The tax on sugary drinks is being extended to include pre-packaged milk-based drinks.

* Pre-packaged milkshakes and coffees with high sugar content will face an extra tax from 2028, as part of an extension of the sugar levy on fizzy drinks.
* The threshold for applying the tax has been lowered to 4.5g of sugar per 100ml, from 5g.
* The tax applies to products in cans, cartons and other packaging, but not to drinks sold over-the-counter in cafes or coffee shops.
* A "lactose allowance" will account for naturally occurring sugars in milk-based drinks.
* Plant-based milk drinks (e.g. soya, oat, almond) will also be brought into the scope of the tax from 2028.
* The tax aims to reduce sugar consumption and tackle childhood obesity.
* Producers may reformulate their products or reduce portion sizes in response to the tax change.
* Industry groups have welcomed the inclusion of the lactose allowance, but criticised the expansion of the tax.
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