The UK government wants to expand the sugar tax to milkshakes and plant-based drinks - here's what you need to know

The UK government wants to expand the sugar tax to milkshakes and plant-based drinks - here's what you need to know

The UK government is considering expanding its sugar tax on fizzy drinks to include milkshakes and other sweetened beverages, as part of new proposals announced in April 2025. The soft drinks industry levy (SDIL), to give it its official name, was introduced in 2018 to reduce people's sugar intake and help tackle obesity.

How does the sugar tax impact businesses?

The sugar tax, formally known as the soft drinks industry levy (SDIL), impacts businesses that sell or import sugary drinks. Affected businesses either absorb the cost, pass it on to customers with higher prices, or reformulate their product to avoid the tax entirely.    The government looks set to tweak the guidelines to include more products in the SDIL, such as dairy or non-dairy milk-based drinks. There are also plans to reduce the maximum a…