Overview
- Pre-packaged milkshakes, flavoured milk and milk‑alternative drinks with added sugar will be brought into the Soft Drinks Industry Levy, with plain unsweetened milk remaining outside the scope.
- Drinks prepared on site in cafés and restaurants will stay exempt, limiting the change to supermarket bottles and cartons.
- Companies are reported to have until 1 January 2028 to reformulate products or face the charge, with a proposed lactose allowance to reflect naturally occurring milk sugars.
- Government estimates for additional revenue vary widely, with reports citing roughly £40–45 million to up to £100 million a year depending on reformulation and market response.
- Health groups cite past levy results of about a 46% sugar reduction in covered drinks, while retail and business voices warn of higher costs, price rises and pressure on producers and dairy farmers.