Out-Law News 1 min. read
‘Sugar tax’ changes announced in the UK
Milkshakes will be subject to the updated ‘sugar tax’. Leon Neal/Getty Images.
25 Nov 2025, 5:43 pm
The threshold at which the UK’s ‘sugar tax’ is levied is to be lowered, with effect from 2028, under plans outlined by the UK government on Tuesday.
The sugar tax, formally referred to as soft drinks industry levy (SDIL), currently applies to certain pre-packaged drinks, like cans of ‘fizzy’ juice, with a sugar threshold of 5g sugar per 100ml. This threshold will now be lowered to 4.5g sugar per 100ml.
The government also confirmed that the SDIL will be extended to apply to “milk-based drinks” and “milk substitute drinks”, also from 2028. That change will remove existing associated exemptions to the SDIL and will impact on products such as milkshakes and ready-to-drink coffees.
The government said lowering the threshold at which the SDIL applies “strikes the appropriate balance between supporting health objectives and fostering conditions that allow the soft drink industry to continue to grow and invest”.
However, regulatory expert Zoe Betts of Pinsent Masons, warned that care will need to be taken by drinks manufacturers to ensure any reformulation of their products in response to the updated SDIL policy do not cause problems of their own.
Betts said: “The government aims, with initiatives such as the sugar tax to help people make healthier choices, are to be applauded. However, industry cannot bear this burden alone. Addressing the obesity epidemic requires cross stakeholder collaboration, bringing in not just industry but health and education to ensure people are properly and fully equipped to make better choices.”
“Reformulation results in significant cost to a business and can affect all in their supply chain, at a time they can least afford this. Whilst it may well result in a product with less sugar content, that does not always equate with being healthier. Care will be required to ensure that the resultant reformulation does not itself create a problem, simply fuelling obesity by another means,” she said.
The government’s announcement follows an earlier consultation with industry and other stakeholders on SDIL reforms.
Wes Streeting, health and social care secretary, said: “The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further. A healthier nation will mean less pressure on our NHS, a healthier economy, and a happier society. It’s a simple change that is part of this government’s mission to give every child a healthy start to life.”
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