Packaged milk drinks, including some packaged coffees, will be included in the sugar tax in the UK, it has been announced.
Ahead of tomorrow’s Autumn Budget, health secretary Wes Streeting confirmed the Soft Drinks Industry Levy – known as the sugar tax – will be extended.
What are the new changes to the sugar tax?
Now, it will include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks. The tax does not apply to drinks made and served in cafes, restaurants and bars.
The threshold for the sugar tax on soft drinks will also be lowered from 5g to 4.5g per 100ml.
It is reported that the changes will come into effect from 1 January 2028, when it is predicted they will bring in £40m to £45m a year.
The results follow the Strengthening the Soft Drinks Industry Levy (SDIL) consultation, which ran from 28 April to 21 July 2025. It set out the case for, and specific proposals to, reform the tax to drive further soft drink sugar reductions.
What is the sugar tax?
The sugar tax was announced by the government in 2016 as a measure to help reduce obesity in the UK.
Coming into effect from April 2018, it initially targeted fizzy and soft drinks, with milk-based beverages exempt.
Around 5,000 cases of obesity per year may have been prevented in year six girls alone as a result, a 2023 study concluded.
It has led to a 46% reduction in the sugar contained in soft drinks affected, according to the government, with almost 90% of products containing less sugar than the taxable level.
We want to hear your thoughts about the changes to the sugar tax! Simply email newsdesk@dentistry.co.uk.
Follow Dentistry.co.uk on Instagram to keep up with all the latest dental news and trends.
