(qlmbusinessnews.com . Wed 30th Apr, 2025) London, UK —
From Cans to Cartons: Milkshake and Latte Tax Could Be Next
The government has launched a consultation on widening the Soft Drinks Industry Levy to cover pre-packaged milk-based and milk-alternative drinks, such as canned lattes and bottled milkshakes, and reducing the sugar-per-100ml threshold from 5g to 4g. Chancellor Rachel Reeves first mooted extending the “sugar tax” in last autumn’s budget, citing its success in reformulating the fizzy-drink market to tackle obesity.
Some 203 products—around 93% of the milk-based segment—would face the levy unless manufacturers cut their sugar content to the new level. Home Secretary Yvette Cooper said the extension was justified because these drinks account for just 3.5% of children’s calcium intake, while their sugar contributes to tooth decay and long-term health issues. The consultation, running until 21 July, seeks views on design, thresholds and transition timetables.
Shadow Chancellor Mel Stride has denounced the measure as a “sucker punch” to families already squeezed by Labour’s cost-of-living rises, while Reform UK’s Nigel Farage and Conservative leader Kemi Badenoch both criticised it as nanny state overreach. Industry bodies, including the Food and Drink Federation, acknowledge substantial sugar reductions made to date (46% in soft drinks, 30% in milk-based beverages) but warn against further burdens amid inflationary pressures.
Public-health campaigners such as the National Obesity Forum’s Tam Fry welcome the move—albeit as one tool among many—to curb childhood obesity and associated diseases. Since its introduction in 2018, the SDIL has generated £1.9 billion, with £338 million raised in 2023–24 alone, funding sport and health initiatives. The government argues that extending the levy will incentivise manufacturers to drive sugar down further in everyday drinks.
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