The threshold at which the soft drinks levy is imposed will also be lowered.
LONDON — Milkshakes and lattes will be subject to a sugar tax for the first time, U.K. Health Secretary Wes Streeting said Tuesday.
Speaking ahead of the budget, Streeting said the government would remove the exemption that milk-based products currently have from the Soft Drinks Industry Levy in January 2028. The threshold at which the levy is imposed will also be lowered from 5 grams to 4.5 grams (g) per 100 milliliters (ml).
Commonly dubbed the “sugar tax,” the levy, which was introduced in 2018 under the previous Conservative government, aims to reduce obesity and improve child health.
“Obesity robs children of the best possible start in life,” Streeting told MPs Tuesday. “It hits the poorest hardest — sets them up for a lifetime of problems.”
Bottles and cartons of milkshakes, flavored milk, sweetened yoghurt drinks, chocolate milk drinks, ready-to-drink coffees and milk substitute drinks will now be eligible for the levy. Drinks prepared in cafes and bars remain out of scope.
The levy requires companies producing drinks that contain between 5g and 8g of sugar per 100ml to pay 19.4 pence per liter while drinks with 8g or more of sugar must pay 25.9 pence per liter.
A government document published Tuesday said ministers expect the Treasury to raise between £40 million and £45 million a year as a result of the changes.
The average sugar content in drinks has fallen by almost 50 percent since the levy’s introduction. It is associated with a fall in rotten tooth extractions in kids and an estimated 8 percent relative reduction in obesity levels among young girls.
Sarah Woolnough, chief executive of the King’s Fund health think tank, said the measure was “not only common sense but also a quick win for government and, most importantly, for children and young people.”