The UK government is considering expanding its sugar tax on fizzy drinks to include milkshakes and other sweetened beverages, as part of new proposals announced in April 2025. The soft drinks industry levy (SDIL), to give it its official name, was introduced in 2018 to reduce people’s sugar intake and help tackle obesity. For soft drinks containing 5-8g of sugar per 100ml, a levy of 18p per litre is applied. This rises to 24p per litre for soft drinks containing over 8g per 100ml.
The Treasury confirmed it plans to move forward not only with broadening the tax but also with lowering the sugar threshold that triggers it from 5g to 4g of sugar per 100ml. The changes, dubbed by critics as the “milkshake tax”, would end the current exemption for dairy-based drinks, as well as plant-based alternatives such as oat and rice milk.
