UK Autumn Budget 2025: The UK government is set to tighten its sugar tax in a bid to reduce rising obesity rates, particularly among children. The changes will broaden the scope of the levy and catch more bottled milkshakes, flavoured milk and plant-based drinks.
With new limits coming into effect in 2028, the policy marks a sharper push towards the reformulation of high-sugar products and the reshaping of industry behaviour.
Why the Sugar Tax Is Being Expanded
The current levy applies to drinks containing 5 grams of sugar per 100 millilitres. The new threshold of 4.5 grams pulls hundreds more beverages into the taxable bracket. Health Secretary Wes Streeting told Parliament that the exemption for milk-based drinks will end, arguing that the state cannot ignore soaring childhood obesity while businesses continue to market sugar-heavy products.
What Drinks Will Now Fall Under the Levy
From January 2028, the new rules will apply to bottled milkshakes, sweetened coffee drinks and flavoured plant-based beverages. Those items were excluded earlier because of their calcium content.
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A lactose allowance would still acknowledge the naturally occurring sugars but any added sugar would trigger the levy. Drinks freshly prepared in cafes including lattes, frappes and hot chocolates are still exempt from the scheme.
How the Industry Is Expected to Respond
The two-year transition period allows manufacturers to experiment with lower-sugar recipes. Many have already reformulated beverages since the sugar tax launched in 2018.
However, industry groups maintain that already dropping below 5 grams has been hard and that reducing it further will impact taste. The British Soft Drinks Association has warned of cost pressures but welcomed relief that the government did not lower the threshold further.
Health Impact & Public Response
The changes have wide support from health experts. Dentists called the revised limits a major win for children’s oral health, with tooth decay still the top reason for hospital admissions among young children in England.
Similarly, public health groups stress that sugar consumption is still far above recommended levels and the stronger levy is one of the few tools proven to shift consumer behavior.
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How Much Sugar Do Children Consume?
According to government figures, children are consuming much more sugar than they should. On average, toddlers between one and three years consume almost double the advised limit of free sugar per day-45 grams.
Children aged between 4 and 10 consume about 55 grams each day, peaking at 70 grams for teenagers. The majority of this sugar comes from sugary drinks, fruit-based beverages and sweet snacks. Public health experts say it is this kind of unrelenting consumption that is driving obesity and dental decay, necessitating much stronger policy measures.
| Age Group | Average Daily Free Sugar Intake | Approx. Sugar Cubes | Recommended Limit | Notes |
|---|---|---|---|---|
| 1.5 to 3 years | 45 g | 11 cubes | Less than 15 g (about 3 cubes) | Nearly 3× the advised intake |
| 4 to 10 years | 55 g | 14 cubes | Less than 19 g | Major sources: fruit drinks, sweet snacks |
| 11 to 18 years | 70 g | 17 cubes | Less than 30 g | Highest intake among all age groups |
The latest National Diet and Nutrition Survey showed that for 4-10 year olds, it was 55g per day, while for teenagers aged 11-18 it is 70g per day-17 sugar cubes.
What It Means for Consumers
From 2028, products could be less sweet or slightly more expensive as firms decide whether to reformulate or pay the levy. Drinks sold in cafes are exempt, meaning only pre-packaged beverages are affected. The Treasury expects tens of millions of pounds in extra revenue each year with the broader ambition, though, is long-term to reduce sugar intake and pressure on the NHS.
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Disclaimer: This article provides general information only and should not be taken as medical or professional advice.
