'Milkshake tax': Evidence Grows Supporting Expansion of UK's Sugar Levy to Fight Obesity

The UK government is actively considering broadening its sugar tax on sugary beverages, including milkshakes and other sweetened drinks, as part of new policy proposals announced in April 2025. The proposed expansion aims to extend the current Soft Drinks Industry Levy (SDIL), which has primarily targeted carbonated soft drinks, to now include dairy-based drinks and plant-based alternatives like oat and rice milks. This move follows the Chancellor Rachel Reeves' indication in the 2024 budget that the levy could be widened to more comprehensively address high-sugar products.

Under the new plans, the threshold for sugary drinks that are taxed would be lowered from 5 grams to 4 grams of sugar per 100 milliliters, effectively increasing the scope of the levy. Critics have dubbed this potential change as the "milkshake tax," since it would remove the current exemption for dairy-based drinks, which are often high in sugar.

Research from the H3 project on food system transformation indicates that such measures are a promising step toward tackling obesity. The existing SDIL, introduced in 2018, has already demonstrated notable impacts: around 89% of soft drinks sold in the UK have been reformulated to contain less sugar, as companies invest millions in reducing sugar content to avoid taxation. For example, Suntory and other manufacturers have invested heavily in reformulating popular drinks like Ribena and Lucozade, removing thousands of tons of sugar.

Obesity remains a serious public health challenge in the UK, with about 29% of adults and 15% of children aged 2 to 15 classified as obese. While the sugar levy alone cannot solve the obesity epidemic, evidence suggests it is contributing to positive change. Since its implementation, there's been a noticeable decline in sugar sales from soft drinks and a revenue generation of nearly £1.9 billion.

Early health data are encouraging, with studies reporting reductions in obesity rates among children in England, particularly in more deprived areas where health inequalities are often most pronounced. Nonetheless, critics argue that the efficacy of the SDIL has been limited and that some view it as an interference with personal choice or an additional financial burden during economic strain.

The design of the SDIL also partly accounts for its success. Since it is levied on manufacturers and importers rather than consumers, companies are incentivized to reformulate products rather than face higher costs. This systemic approach shifts responsibility from individuals to industry, encouraging healthier product development.

While reformulated drinks may still contain sweeteners and additives, the overall reduction in sugar content aligns with public health goals of reducing obesity and related diseases such as diabetes and cancer. The success of the levy underscores the potential for fiscal policies to promote healthier behaviors without disproportionately impacting lower-income households.

In the broader context, addressing obesity requires multifaceted strategies, including improving food environments and access to physical activity. Nevertheless, expanding the sugar levy represents a pragmatic, evidence-based policy that supports systemic health improvements and could serve as a model for other nations.

Source: https://medicalxpress.com/news/2025-05-milkshake-tax-evidence-uk-sugar.html