The UK government has confirmed that the soft drinks industry levy will be expanded to include a wider range of high-sugar milk-based products. The update brings flavoured milks, sweetened yogurt drinks, milkshakes and ready-to-drink coffees into scope for the first time. Plain and unsweetened dairy and non-dairy drinks remain exempt.
The change lowers the sugar threshold from 5g to 4.5g per 100ml. Manufacturers and importers will fall under the levy if they do not reformulate by 1 January 2028. The government said the move reflects the high levels of added sugar found in many pre-packaged milk drinks, which had previously been excluded despite containing similar sugar volumes to standard soft drinks.
The original levy, introduced in 2018, has contributed to a near 50% reduction in average sugar levels across qualifying products. Ministers expect the latest extension to prompt further reformulation across the dairy and ready-to-drink coffee sectors.
The measure forms part of a broader national health agenda targeting obesity and diet-related disease. Government modelling projects reduced calorie intake across England and long-term savings to public health budgets. Industry bodies have noted the scale of reformulation and compliance work required, with businesses facing changes to recipes, labelling, and production processes. Some analysts have highlighted the financial and operational impact on manufacturers, importers, and suppliers, alongside the need for clearer long-term nutrition guidance.