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Home Politics

Milkshakes and lattes to be hit with sugar tax, Wes Streeting announces

Sarah Taylor by Sarah Taylor
November 25, 2025
in Politics, US News, World
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Milkshakes and lattes to be hit with sugar tax, Wes Streeting announces
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Milkshakes and lattes will be hit with a sugar tax for the first time in a bid to tackle obesity, Health Secretary Wes Streeting has said.

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The levy will apply to packaged drinks, not those made in cafes and restaurants.

Mr Streeting confirmed the measure in the Commons on Tuesday, telling MPs: “Obesity robs children of the best possible start in life, hits the poorest hardest, sets them up for a lifetime of health problems and costs the NHS billions.

“So, I can announce to the house we’re expanding the soft drinks industry levy to include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks.”

Milk-based drinks are currently exempt from the soft drinks levy, also known as a sugar tax.

This came into force in 2018 and applies to drinks with at least 5g of sugar per 100ml.

Mr Streeting said that as well as extending the levy to milk-based products, the government will lower the threshold at which it can apply – to 4.5g of sugar per 100ml.

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He said: “This government will not look away as children get unhealthier and our political opponents urge us to leave them behind.”

There has been a 46% reduction in sugar in fizzy drinks since the original tax came into force, with 89% of soft drinks sold in the UK now not paying the charge due to reformulation.

Modelling studies have found that this may have prevented thousands of cases of childhood obesity and reduced tooth decay.

However, the Labour government said UK sugar intakes remain about double the recommended level and launched a consultation in April to extend the tax.

The measure will be included in Rachel Reeves’s budget on Wednesday, when the chancellor is expected to announce a series of smaller tax rises to fill a £30bn blackhole, after scrapping a plan to raise income tax.

The milkshake levy will raise up to £100m a year from 2027, The Times previously reported.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

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