Global Edition
Global Edition
UK Edition
EU Edition
US Edition

Understand the story, not the spin.

Markets

UK Expands Sugar Tax to Milk-Based Drinks

Published 25 November 2025

The UK government has expanded its sugar tax on soft drinks to include prepackaged milk-based beverages such as milkshakes, flavoured milk, and certain milk substitutes, Health Secretary Wes Streeting announced in Parliament this week. The changes, set to take effect in 2028 following a technical consultation, also lower the sugar threshold for the levy from 5 grams per 100 millilitres to 4.5 grams, potentially affecting a wider range of products sold in supermarkets and stores.

Streeting made the announcement during health questions in the House of Commons, framing it as a key step to address rising childhood obesity. "This government will not look away as children get unhealthier," he told lawmakers, adding that obesity "robs children of the best possible start in life, hits the poorest hardest, sets them up for a lifetime of health problems and costs the NHS billions." The expansion targets manufacturers of bottled or carton drinks, requiring them to either reformulate products to reduce added sugars or absorb the tax costs, which could lead to higher prices for consumers. Exemptions remain for drinks prepared in cafes, restaurants, and bars, as well as those relying solely...

Now playing
0:00 / 0:00