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Government to introduce ‘sugar tax’ for milkshakes and lattes – London Business News | London Wallet

Philip Roth by Philip Roth
November 25, 2025
in UK
Government to introduce ‘sugar tax’ for milkshakes and lattes – London Business News | London Wallet
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The Health Secretary Wes Streeting has announced that pre-packaged milkshakes and lattes will be subject to a new “sugar tax.”

Speaking in the House of Commons on Tuesday Streeting told MPs the government will stop the exemption for milk-based drinks from the current tax on drinks with sugar.

Drinks which are made in cafes and restaurants will not be affected, only pre-packaged milkshakes and coffees will be subjected to the new tax.

Streeting said that the government will reduce the amount of sugar in drinks to 4.6g per 100ml, MPs were told.

The Health Secretary told MPs, “Obesity robs children of the best possible start in life, hits the poorest hardest, sets them up for a lifetime of health problems and costs the NHS billions.

“So I can announce to the House, we’re expanding the soft drinks industry levy to include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks.”

“Mr Speaker, this Government will not look away as children get unhealthier, and our political opponents urge us to leave them behind,” he said.

Health minister Karin Smyth told Times Radio on Tuesday that “obesity is the major challenge of our health service for this generation”.

She was asked if tackling the obesity crisis is more important than raising money for the health service, Smyth told Times Radio these measure will be set out by the Chancellor in the Budget, however “the wider point is about tackling obesity, which we know is one of the biggest causes of ill health, and therefore demand on the health service.”

“Measures we’ve already announced as part of the manifesto, to reduce junk food advertising, particularly to protect young people from becoming obese, because if you come obese at a young age, it does limit your life chances.

“So tackling obesity is a central plank of prevention, which is one of our three shifts in the NHS, which we announced in the 10-year plan, as is getting down these waiting lists.”

Smyth added, “Obesity is the major challenge of our health service for this generation, and it is important that we make sure that we create the healthiest young generation of children coming forward.

“That’s why we are trying to we’re getting through, for example, the Tobacco and Vapes Bill.

“So it’s important to balance public health and work with industry to make sure that happens.”

Smyth was asked if this will be a possible boost for the NHS in the Autumn Budget and could be spent on striking doctors.

She told Sky News, “The Chancellor protected the NHS and our public services in the last budget and that, as you’ve outlined, does involve those hard choices, but it is yielding results.

“Those waiting lists are coming down by over 200,000, we had more GPs put into post, access is improving. It’s got a long way to go.

“We understand that. It is really difficult. The strikes are really difficult. They do knock some of that improvement off course, but those green shoots are there.

“And I think people are starting to feel that, and staff are starting to feel that.”



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