Soft drinks levy charges to change

Tax to be introduced across packaged milk drinks and lattes

THE UK Government has announced changes to how the sugar tax levy will be applied to soft drinks across the UK.

The threshold for the sugar tax on soft drinks is now set to be lowered from 5g per 100ml to 4.5g per 100ml and the Government is also now set to remove the exemption to the tax that currently applies to milk-based drinks.

The change is expected to be introduced 1 January 2028 as Wes Streeting, health secretary, reported to the House of Commons on 25 November that the move had been taken in the best interest of consumers’ health.

He said: “An unhealthy start to life holds kids back from day one, especially those from poor backgrounds like mine. We’re on a mission to raise the healthiest generation of children ever, and that means taking on the biggest drivers of poor health.

“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.”

The new plans are expected to reduce daily calorie intake by around 4 million in children and 13 million in adults across England. This could prevent almost 14,000 cases of adult obesity and nearly 1,000 cases of childhood obesity.

It is expected to also deliver almost £1 billion in health and economic benefits, including by saving the NHS £36 million, reduce social care pressures by £30 million, and contributing around £221 million in economic output through improved workforce participation.

Speaking on the changes to the sugar tax levy, a spokesperson for the Food & Drink Federation said: “We’re pleased the government has listened to industry and decided to make the changes to the Soft Drinks Industry Levy that it announced today. 

“The new proposals take into account the costly and technically complex work that companies have to do to bring healthier products to market, and go some way to protecting the investment companies are making to help people follow healthier diets.

“Drinks manufacturers will continue conversations with government to ensure we have the right conditions to keep investing in healthier product innovation in the UK, even while the rate of food inflation continues to run so high. 

“Government support and partnership to ensure industry has the R&D investment it needs for healthier product development would help food and drink companies move further and faster.”