UK extends levy on high-sugar drinks to milkshakes in anti-obesity focus

London, Nov 25 (PTI) The UK on Tuesday announced an extension of a Soft Drinks Industry Levy, so-called sugar tax, to more pre-packaged milk-based products such as milkshakes as part of an ongoing anti-obesity focus.

The Department of Health and Social Care (DHSC) said milk-based drinks with added sugar like supermarket milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks, and ready-to-drink coffees can contain as much added sugar as fizzy drinks.

Companies will have until January 2028 to remove the added sugar or face the new charge, which is said to reportedly add 1 billion pounds in health and economic benefits.

“The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further," said Wes Streeting, UK Health Secretary.

“A healthier nation will mean less pressure on our NHS [National Health Service], 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,” he said.

The threshold for the permitted level of added sugar is also being lowered from 5g to 4.5g of sugar per 100ml. This means more high-sugar drinks will fall under the levy unless manufacturers reduce sugar by the January 2028 deadline.

The measures are set to cut around 17 million calories a day from the country's daily intake, with the expanded levy expected to add around 45 million pounds to the country's coffers.

A welcome boost for Chancellor Rachel Reeves as she prepares to table the much-anticipated autumn Budget in Parliament on Wednesday.

The DHSC said that obesity is one of the root causes of diabetes, heart disease and cancer and the UK now has the third highest rate of adult obesity in Europe, costing the NHS 11.4 billion pounds a year.

The levy is among a set of measures it claims are targeted at tackling the obesity crisis to prevent “hundreds of thousands of people becoming obese, helping to prevent cancer, heart disease, and stroke”.

The levy applies to manufacturers and importers and has already led to companies acting by halving sugar content in popular drinks to avoid the tax since it was imposed a few years ago. Now, experts expect that companies will do the same with the extension of the product range.

“The existing Soft Drinks Industry Levy has already substantially reduced the amount of sugar in shop-bought products, helping slow the increase in childhood obesity and bring down hospital admissions for tooth extractions among young children. Extending the sugar levy is likely to have further benefit for child health," Professor Sir Chris Whitty, England’s Chief Medical Officer.

At present, the Soft Drinks Industry Levy is charged at 18 pence a litre on drinks containing at least 5g of total sugar per 100ml, and 24p a litre on drinks with 8g of sugar or more. PTI AK 11251650 SCY SCY