Sugar Tax: What You Need to Know
The UK government is set to expand its sugar tax scheme to include milk-based drinks like milkshakes and lattes, marking a significant step in the fight against obesity. This move comes as part of a broader strategy to reduce sugar intake and promote healthier diets.
How It Works
The sugar tax, officially known as the Soft Drinks Industry Levy (SDIL), is a tax on pre-packaged drinks with added sugar. It was introduced in April 2018 and has already shown positive results. From April 2028, the tax will extend to milk-based drinks, requiring companies to reduce sugar content or face the tax.
This could mean a less sugary taste or a slight increase in price for consumers. The government is considering a ‘lactose allowance’ to account for the natural sugars in milk, which could impact the tax structure.
What Drinks Are Included?
The sugar tax applies to pre-packaged soft drinks with added sugar, including those sold in cans, bottles, and cartons in supermarkets. Milk-based drinks have been exempt due to their calcium content, but this exemption is under review due to high sugar levels in some products.
Exclusions and Special Cases
Drinks made and served in cafés, restaurants, and bars are not taxed. Soft drinks with only natural sugars, like pure fruit juice, are also exempt. Alcohol-free beer, wine, infant formula, and drinks sold as powder are not included. The tax doesn’t apply to milk substitutes like soy, almond, or oat drinks if they contain 120mg of calcium per 100ml.
Tax Rates and Impact
Currently, the tax is 18p per liter on drinks with at least 5g of sugar per 100ml and 24p per liter on drinks with 8g or more. The government is considering reducing the maximum sugar limit from 5g to 4g per 100ml. The sugar tax has already led to a 46% reduction in sugar in affected soft drinks, with nearly 90% of the market now meeting the tax criteria.
The Obesity Crisis
Despite these successes, experts highlight the persistent high sugar intake in UK diets. Current advice suggests free sugars should make up no more than 5% of daily energy intake, but UK consumption is around double that. Obesity rates remain high, with nearly two-thirds of the population overweight or obese, prompting the government’s review and expansion of the sugar tax.