Wedoany.com Report-Nov. 26, Britain's health department announced on Tuesday that it will remove the current sugar-tax exemption for pre-packaged milk-based drinks containing added sugar, including bottled milkshakes and flavoured milky coffees, effective from January 2028.

Bottles of Yazoo flavoured milkshake drinks are lined up for sale on the shelf of a supermarket in Manchester, Britain, November 25, 2025.

The Soft Drinks Industry Levy (SDIL), introduced in 2016, applies to ready-to-drink beverages sold in supermarkets and stores. The measure aims to encourage manufacturers to lower sugar content and support public health objectives related to obesity reduction.

From January 2028, the exemption that currently covers milk-based drinks with added sugar will end, while plain milk and drinks without added sugar will remain outside the levy's scope. Beverages prepared and served in open cups at cafes, restaurants and bars will also continue to be excluded.

In addition, the government will lower the sugar threshold that triggers the levy from 5 grams to 4.5 grams of total sugar per 100 millilitres. The existing exemption for plant-based milk alternatives with added sugar will similarly be removed.

The health department stated that the two-year transition period will allow manufacturers sufficient time to adjust product formulations.

"The government remains committed to addressing the obesity epidemic and considers prioritising a system of prevention to be instrumental in tackling the health and economic impacts of obesity," the department said in its announcement.

The updated rules are projected to generate up to £45 million annually in additional revenue starting in 2028. These measures will be formally included in the 2025 budget, which Finance Minister Rachel Reeves is scheduled to present on Wednesday.

The changes reflect ongoing efforts to refine the levy introduced nearly a decade ago, which has already prompted many producers to reduce sugar levels in their formulations. By extending the scope to certain milk-based and plant-based products, the government seeks to maintain consistency in the application of the tax across a broader range of sweetened beverages.

Industry members now have until early 2028 to complete any necessary recipe adjustments ahead of the new requirements taking effect. The adjustments are expected to contribute to long-term public health goals while providing a clear timeline for compliance across the soft drinks sector.