The sugar tax currently imposed on soft drinks could be applied to milkshakes as the government seeks to crack down on rising obesity levels.
The government has opened a consultation to extend the tax to pre-packaged drinks containing at least 75% milk, including non-dairy substitutes with added sugar such as oat, soy, almond and rice milk.
This will include pre-packaged cans of latte, flavoured milkshake drinks and cartons of milk alternatives bought in supermarkets.
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Ministers also want to lower the minimum amount of sugar allowed before the tax is applied in these drinks, as well as in fizzy drinks already included in the tax – known formally as the Soft Drinks Industry Levy.
Extending the tax will hit 203 pre-packaged milk-based drinks currently available – 93% of sales, Department of Health analysis found.
The original sugar tax on soft drinks was introduced in 2018 under the Conservative government and has led to a 46% reduction in sugar in those drinks, with 89% of soft drinks sold in the UK now not paying the tax due to reformulation.
Modelling studies have found this may have prevented thousands of cases of childhood obesity and cut down on tooth decay.
However, the government said UK sugar intakes remain about double the recommended level, which is why Chancellor Rachel Reeves announced in the October budget there would be a consultation to extend it.
The proposals are:
• To reduce the minimum sugar content at which the tax applies from 5g to 4g of sugar per 100ml
• To include milk-based drinks – but with a “lactose allowance” to account for milk’s natural sugars
• To also include milk substitute…

