Pre-packaged milkshakes and coffees that are high in sugar will be hit with an extra tax from 2028, after the government said it was extending the tax on fizzy drinks to include milk-based products.
“This government will not look away as children get unhealthier,” Health and Social Care Secretary Wes Streeting said in Parliament.
That could mean an extra tax on popular products like Yazoo, Muller’s Frijj and Starbucks Caffe Latte as well as drinks branded “high protein” like Ufit and Shaken Udder.
The levy, brought in by the Conservative government in 2018, is designed to reduce sugar consumption and obesity by giving manufacturers an incentive to use less sugar.
The government is also lowering the threshold at which the tax applies from 5g of sugar per 100 ml to 4.5g per 100ml.
However, there will also be a “lactose allowance” to account for the naturally occurring sugars in milk.
That means some of the sweetness in milk-based drinks will not count towards the total sugar when determining their liability for the tax.
The tax applies to products in cans, cartons and other packaging, but not to drinks sold over-the-counter in cafes or coffee shops, and raised £327m last year.
Fruit juices, alcohol-free beer and wine, and meal replacement drinks do not pay the tax.
