The Chancellor’s autumn budget lands tomorrow, but the Health Secretary has already caused a stir with today’s announcement that the government plans to reformulate the Soft Drinks Industry Levy, better known as the sugar tax.

First introduced in 2018 to tackle obesity, the levy currently applies to drinks with more than 5g of sugar per 100ml, impacting manufacturers and mass-importers. The new recipe? Lowering the threshold for which the levy applies from 5g to 4.5g per 100ml and scrapping the exemption for bottled milkshakes, flavoured milk, and milk substitute drinks. Open‑cup drinks prepared in cafés and bars, plain cow’s milk, and other milk drinks without added sugar remain exempt.

Why the shake-up? Sugar intake is still double recommended levels.

The changes are also set to sweeten the government’s coffers by raising an extra £40–45m in tax receipts when the changes kick in on 1 January 2028. 

The implementation date gives manufacturers time to decide - reformulate recipes, raise prices, shrink portions, or absorb the additional cost.

Depending on the actions taken, manufacturers will need to revisit:

• recipes, which will require investment in research and development with the possibility of compromising on taste or quality of its products;
• revisiting its labelling and classification for products; and
• revisiting its contracts with suppliers and distributors, specifically in connection with potentially triggering price adjustment mechanisms.

It’s time to get moooo’ving on addressing the impact of the changes announced today before it's too latte!
https://www.theguardian.com/business/2025/nov/25/uk-sugar-tax-milkshakes-pre-packed-lattes