Overview
- Health Secretary Wes Streeting confirmed the Soft Drinks Industry Levy will cover pre-packaged milk-based and plant-based drinks with added sugar, including milkshakes, flavoured milks, yoghurt drinks, chocolate milks and ready‑to‑drink coffees.
- The lower sugar threshold will drop from 5g to 4.5g per 100ml, bringing more products into scope unless manufacturers cut sugar content.
- Plain unsweetened milk remains exempt and drinks prepared open‑cup in cafes, bars and restaurants stay outside the levy, with HMRC confirming technical rules following the consultation.
- A proposed lactose allowance will account for naturally occurring milk sugars, and plant-based drinks with added sugars will lose their exemption.
- Government modelling cites daily calorie reductions of about 17 million across England and projects up to £45 million a year in extra receipts from 2028, with the measure included in Wednesday’s Budget.