The government has announced a consultation to extend and strengthen the Soft Drinks Industry Levy (SDIL), commonly known as the sugar tax, to include milkshakes and pre-packaged coffees. This move aims to further reduce sugar consumption and prevent food-related ill health.​

Introduced in 2018, the SDIL initially targeted sugary soft drinks with over 5g of sugar per 100ml. The latest proposed extension would also lower the sugar threshold to 4g per 100ml, bringing numerous additional products under the levy, many of whom are clustered just under the 5g mark. The government also plans to increase the tax rates by 27% by 2027, to account for a freeze in the rates since its introduction.

Health experts and campaigners, including the Recipe for Change campaign, have welcomed the proposed strengthening of the levy, noting its potential to further reduce sugar intake and alleviate pressure on the NHS.

While an extension of the SDIL is a positive step towards improving public health, many campaigners however believe that further action is needed. In a letter to Chancellor Rachel Reeves and Health Secretary Wes Streeting, 35 health and children's groups, led by the Recipe for Change campaign, called for the SDIL to be expanded to foods high in salt or sugar, such as cakes, sweets, biscuits, crisps, and savoury snacks. They argue that similar to the sugar tax on soft drinks, an expanded levy would incentivise manufacturers to reformulate their products, making healthier eating easier for consumers. They add that any money raised from companies not changing their products could be spent on investments in children’s health and access to good food.

Barbara Crowther, Children’s Food Campaign Manager at Sustain said:

 “The start of this consultation on strengthening the Soft Drinks Industry Levy is sweet music to our ears!

 “The SDIL has already achieved significant sugar reduction, and we hope these proposals will encourage companies to go even further to reduce the sweetness of their drinks. We welcome proposals to end the exemption for sugary milkshakes and bring these into line with other soft drinks – this makes absolute sense. We encourage everyone interested in supporting healthier diets and a healthier nation to contribute to this consultation.

 “However, current levies are only for soft drinks and do not address the high volumes of sugar, salt and calories in a wide variety of snacks and foods. We and our 46 partners in the Recipe for Change campaign urge the government to explore how similar financial incentives could be applied to a wider range of foods. We also call on the government to ensure any funding from food and drink levies is used to increase access to healthy food for children and low-income families and communities.”

 

Katharine Jenner, Director of the Obesity Health Alliance said:

"We warmly welcome the review into the existing Soft Drinks Industry Levy (SDIL). It is absolutely right that the Chancellor is looking to remove exemptions for the remaining sugary drinks on the market, to incentivise healthier drink production. A healthy population is the foundation of a strong economy, easing pressure on the NHS and freeing up resources for those most in need.

“The SDIL has been a clear success — cutting sugar consumption, particularly among lower-income groups, without harming sales. It has led to real health benefits, including reductions in obesity among older girls and fewer hospital admissions for tooth decay, but it could go further.

“The public wants healthier food and drink options, and businesses need a level playing field to deliver them. Voluntary action alone has failed; we need policies that make the healthy choice the easy choice. This review is a vital step towards building the healthiest generation of children ever."

The government consultation will run from 28 April until 21 July.