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UK Government Opens Consultation to Expand Sugar Tax to Milk-Based Drinks

Proposals include lowering the sugar threshold to 4g per 100ml and ending exemptions for milkshakes and non-dairy alternatives.

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Overview

  • The consultation, running until July 21, 2025, aims to extend the Soft Drinks Industry Levy (SDIL) to pre-packaged milkshakes, lattes, and non-dairy substitutes such as oat and rice milk.
  • The sugar threshold for taxation would be reduced from 5g to 4g per 100ml, potentially affecting 93% of milk-based drinks currently on the market unless reformulated.
  • Officials project £4.2 billion in health and economic benefits over 25 years, including reduced obesity rates and NHS cost savings.
  • Critics, including industry bodies and think tanks, argue the changes could burden businesses and consumers during a cost-of-living crisis.
  • Since its 2018 introduction, the SDIL has driven a 46% reduction in sugar content in fizzy drinks, with 89% of such drinks now avoiding the tax due to reformulation.