Monday, 1 December 2025

The Milkshake Tax

 
The UK government has confirmed plans to extend the Soft Drinks Industry Levy—better known as the sugar tax—to include milkshakes, flavoured milks, and sweetened coffee drinks. Until now, these products were exempt because of their calcium content, but ministers say the exemption no longer makes sense. From 2028, any pre-packaged milk-based drink with more than 4.5g of sugar per 100ml will be taxed. Drinks like Yazoo, Frijj, and Starbucks bottled lattes are among those set to be affected. The levy aims to tackle childhood obesity, which costs the NHS billions each year, and encourage manufacturers to reduce sugar content—just as they did when the original tax launched in 2018. The government argues the move could cut millions of calories from the national diet and raise up to £100 million annually. Critics, however, call it a “stealth tax” that will push up prices during a cost-of-living crisis. Industry groups warn that reformulation will be expensive and question whether the measure will make a real difference to health outcomes. So, will this tax change behaviour—or just make milkshakes a luxury?

BBQ - Do you think taxes on sugary drinks are an effective way to improve public health? What other strategies could the government use to tackle obesity? What might be the reaction of a the businesses like Yazoo?