Overview

• The UK government has proposed removing the exemption for milk-based drinks under the Soft Drinks Industry Levy, including milkshakes and sweetened yoghurt drinks.
• The sugar threshold for the levy would be reduced from 5g to 4g per 100ml, broadening the scope of products subject to the tax.
• Officials estimate that 93% of current milk-based drinks would fall under the levy unless manufacturers reformulate their recipes to reduce sugar content.
• Prices for affected drinks could increase by up to 26p per litre, incentivizing companies to cut sugar levels in their products.
• The consultation includes a 'lactose allowance' to account for natural milk sugars and highlights that milk-based drinks contribute minimally to calcium intake compared to other sources.