The sugar tax currently imposed on soft drinks could be applied to milkshakes as the government seeks to crack down on rising obesity levels.
The government has opened a consultation to extend the tax to pre-packaged drinks containing at least 75% milk, including non-dairy substitutes with added sugar such as oat, soy, almond and rice milk.
This will include pre-packaged cans of latte, flavoured milkshake drinks and cartons of milk alternatives bought in supermarkets.
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Ministers also want to lower the minimum amount of sugar allowed before the tax is applied in these drinks, as well as in fizzy drinks already included in the tax – known formally as the Soft Drinks Industry Levy.
Extending the tax will hit 203 pre-packaged milk-based drinks currently available – 93% of sales, Department of Health analysis found.
The original sugar tax on soft drinks was introduced in 2018 under the Conservative government and has led to a 46% reduction in sugar in those drinks, with 89% of soft drinks sold in the UK now not paying the tax due to reformulation.
Modelling studies have found this may have prevented thousands of cases of childhood obesity and cut down on tooth decay.
However, the government said UK sugar intakes remain about double the recommended level, which is why Chancellor Rachel Reeves announced in the October budget there would be a consultation to extend it.
The proposals are:
• To reduce the minimum sugar content at which the tax applies from 5g to 4g of sugar per 100ml
• To include milk-based drinks – but with a “lactose allowance” to account for milk’s natural sugars
• To also include milk substitute drinks with added sugars.
The government says this could reduce daily calorie intake by 1.2kcal in 19-64 year olds and 2.1kcal in 11-18 year olds to achieve health and economic benefits of around £4.2bn over 25 years.
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‘Sucker punch’ to stretched families
The Conservatives said the extension is a “sucker punch” to households when Labour had “already pushed up the cost of living for families”.
Reform UK leader Nigel Farage told the BBC he was “sick to death of a government telling us how we should live” and said they should focus on educating people who can then make healthy decisions.
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Currently, the sugar tax is charged at £1.94 per 10 litres on drinks with 5g to 7.9g sugar per 100ml and £2.59 per 10 litres for drinks with 8g or more sugar per 100ml.
For the 2023/2024 financial year, the sugar tax brought in about £338m, with 95% paid on drinks containing 8g or more sugar per 100ml.
Milk and milk substitute-based drinks have been exempt from the sugar tax over concerns one in five teenage girls did not get enough calcium in their drinks.
However, milk-based drinks only provide up to 3.5% of calcium for children aged 11 to 18 years, compared with 25% from plain milk and 38% from cereal products, including fortified white bread.
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Calls for sugar tax on food
Industry body, the Food and Drink Federation, welcomed the consultation and said “significant progress” had already been made in reducing sugar in soft drinks and pre-packed milk drinks in the last three years.
It added manufacturers are facing a series of pressures and called on the government to “create the right conditions for businesses to innovate and also be clear about their long-term goals to promote business confidence”.
Charity The Food Foundation also welcomed the consultation but said the government needs to be more ambitious and include food in the sugar tax “if the government is serious about improving diets, our health and the economy”.
The consultation will run from 28 April until 21 July, with businesses, charities and individuals encouraged to let their views be known.
