Ask Onix
UK expands sugar tax to milkshakes and coffees from 2028
Health Secretary Wes Streeting announced on Tuesday that pre-packaged milkshakes, flavored coffees, and other milk-based drinks high in sugar will face an expanded sugar levy beginning in 2028, broadening the existing tax on fizzy drinks to combat childhood obesity.
Stricter sugar limits and broader scope
The threshold for the tax will drop from 5g to 4.5g of sugar per 100ml, capturing more products under the levy. Popular brands such as Yazoo, Frijj, and Starbucks Caffe Latte-alongside high-protein drinks like Ufit and Shaken Udder-could now incur additional taxes. Plant-based milk drinks, including those made with soya, oat, or almond, will also fall under the new rules.
Previously exempt due to their calcium content, milk-based beverages will now be taxed, though a "lactose allowance" will exclude naturally occurring milk sugars from the total count. The move aims to push manufacturers toward reformulation while accounting for dairy's nutritional profile.
Industry and public health response
Judith Bryans, CEO of Dairy UK, called the expansion "disappointing" but acknowledged the lactose exemption as a positive step, noting it recognizes dairy's "unique composition" and avoids penalizing natural sugars. Meanwhile, the Food and Drink Federation welcomed the government's consideration of reformulation challenges, stating the policy balances health goals with industry constraints.
"This government will not look away as children get unhealthier. Obesity robs children of the best possible start in life, hits the poorest hardest, and costs the NHS billions," Streeting told Parliament.
Impact on prices and consumption
The tax may not directly raise retail prices if manufacturers absorb costs or reduce sugar content, as seen with the original 2018 levy. That policy led to a 46% sugar reduction in fizzy drinks, according to government data. Producers are expected to adjust recipes or portion sizes to avoid the tax, potentially altering consumer behavior.
Exemptions and criticism
Fruit juices, alcohol-free beer and wine, and meal replacement drinks remain exempt. Critics argue the tax oversteps government authority in personal choices, while supporters cite its role in easing pressure on public health services.
