URGENT UPDATE: The UK Government has just announced a significant expansion of the sugar tax, impacting pre-packaged milkshakes, lattes, and other milk-based drinks starting January 1, 2028. Health Secretary Wes Streeting confirmed in the House of Commons that the exemption for these beverages will be eliminated, marking a pivotal step in the fight against childhood obesity.
This decision means that products like packaged milkshakes and sweetened coffees will now face the sugar tax, aimed at reducing sugar consumption among children. Streeting emphasized the need for action, stating, “Obesity robs children of the best possible start in life… costs the NHS billions.” The move is designed to address the alarming statistic that children’s sugar consumption in the UK exceeds the recommended maximum by more than double.
The updated sugar tax will require manufacturers to lower the maximum sugar content in these drinks to 4.5 grams per 100ml. The Government is also considering a further reduction to 4 grams, a change that could yield significant health benefits. Streeting noted that this could eliminate up to 17 million calories from daily consumption in the UK, potentially preventing nearly 14,000 instances of adult obesity and 1,000 cases of childhood obesity.
While fresh beverages prepared in cafes and restaurants will remain exempt, the change affects a range of products sold in stores, including flavored milk and milk substitutes. Streeting asserted: “This Government will not look away as children get unhealthier,” reinforcing the urgency of this legislative shift.
According to the Treasury, the current soft drinks industry levy has already led to a 46% average reduction in sugar in targeted beverages from 2015 to 2020. Health Minister Karin Smyth stated that “obesity is the major challenge of our health service for this generation,” highlighting the immediate relevance of the new regulations.
The Department of Health projects that the changes could substantially lower calorie intake, with expectations of reducing consumption by approximately 4 million calories in children and 13 million in adults throughout England. These measures aim to combat preventable health issues such as cancer, heart disease, and stroke.
Public health advocates are welcoming the decision. Katharine Jenner from the Obesity Health Alliance called the move “sensible and long-overdue,” emphasizing its role in protecting children’s health. “The soft drinks industry levy has already removed billions of teaspoons of sugar from the nation’s diet without harming industry growth,” she stated.
However, concerns are being raised about the tax’s impact on businesses, especially in the high street and hospitality sectors. Nick Garside, VAT partner at Menzies, remarked that the levy could add strain to an already struggling industry. “This is another blow to businesses already drowning in complex taxes and soaring fixed costs,” he said.
As implementation approaches, the Government is under pressure to ensure that it balances public health benefits with support for the food and drink industry. Andrew Opie, from the British Retail Consortium, warned that the new tax could push prices higher, potentially affecting British dairy farmers.
With just over four years until implementation, the focus will now shift to how manufacturers adapt to these changes. The Government’s commitment to reducing sugar in beverages is a crucial step towards building a healthier future for children in the UK. As this urgent issue develops, stakeholders from all sides will be watching closely to see how the landscape of sugary drinks will change.
Stay tuned for more updates on this evolving story.
