What you need to know

Milkshakes, coffee drinks and milk substitutes are to be included in the government’s sugar tax scheme for the first time in the UK in a renewed initiative to help tackle obesity.

The sugar tax, formally known as the soft drinks industry levy (SDIL), is a tax on pre-packaged drinks, such as those sold in cans and cartons in supermarkets.

Health and Social Care Minister Wes Streeting announced the tax extension ahead of the budget in the House of Commons on Tuesday.

The sugar tax will also apply to milk-based beverages as of January 1, 2028.

The government says companies producing these drinks will have to reduce the sugar they contain or face taxes.

This means they may either taste different (less sugary) or be slightly more expensive.

The tax was introduced by the Conservative government in April 2018 as a way to make diets healthier and tackle obesity by reducing sugar intake.

When making the announcement, the health secretary said: “Obesity is depriving children of the best possible start in life, hitting the poorest, leaving them with lifelong health problems and causing billions of dollars in damage to the NHS.”

The sugar tax applies to pre-packaged soft drinks with added sugar.

It already applies to most sugary and carbonated soft drinks sold in cans, bottles and cartons in supermarkets.

It will now also apply to pre-packaged sweetened milk-based drinks such as milkshakes and lattes sold in supermarkets.

Milk-based drinks are exempt from sugar tax because they contain calcium, which is encouraged in the diet of children and young people.

But the high sugar content of some milk-based drinks means the government has removed this exemption.

The government has consulted on the introduction of a ‘lactose allowance’ which would take into account the natural sugars in the milk content of these drinks.

All milk substitute drinks, such as soya, almond or oat drinks, were previously exempt from the sugar tax if they contained 120 mg calcium per 100 ml.

However, these drinks will now be taxed if they contain added sugar beyond that derived from the main ingredient.

Sugar tax is not applied to drinks prepared and served in cafes, restaurants and bars. In other words, coffee, latte and other milk drinks made in cafe facilities will not be included in the scope of this tax.

Soft drinks made with only natural sugars, such as cow’s milk and pure fruit juice, are also not included in the tax.

Non-alcoholic beer or wine, baby food, beverages sold in powder form, and cocktails or cocktails served in open containers are also not included in the sugar tax.

The tax is currently charged at 18p per liter of drinks containing at least 5 grams of total sugar per 100ml and 24p per liter of drinks containing 8 grams or more of sugar.

But the government is lowering the maximum amount of sugar allowed in drinks. The limit will now be 4.5 grams per 100 ml instead of 5 grams.

The government says it has so far seen a 46% reduction in the sugar content of affected soft drinks.

Almost 90% of the market now contains less sugar than the level at which the tax was imposed.

But experts say there is still too much sugar in UK diets.

The current recommendation in the UK is that free sugars should make up no more than 5% of daily energy intake.

However, the amount of sugar consumed in the UK is around twice this amount. There are no signs of decline in obesity rates in children and adults either; Almost two-thirds of people in the UK are overweight or obese.

This is what prompted the government to review the tax and extend it to milk-based drinks.