Soft Drinks Industry Levy expanded in the Budget

November 26, 2025

The British Liver Trust is delighted with the news which confirms the government’s plans to remove the exemption on sugary milk-based drinks and plant alternatives and lower the entry threshold from 5g to 4.5g.

This follows the three-month consultation which, as part of the Obesity Health Alliance, the British Liver Trust responded to, as well as many years of campaigning.

Vanessa Hebditch, Director of Policy at the Trust said,

“We are facing an overweight public health crisis. Obesity is one of the root causes of metabolic dysfunction-associated steatotic liver disease (MASLD), previously called NAFLD or ‘fatty liver disease’. We have created an environment where it is difficult to eat healthily and carrying excess weight has become the norm. This welcome announcement is one step in addressing the easy access and excessive availability of unhealthy food, which is often cheaper than healthier alternatives.”

The Government announcement confirms that the

  • soft drinks levy will be extended to cover more products, including sugary milk-based drinks.
  • changes could cut 17 million calories a day from the nation’s daily intake, also helping to prevent cancer, heart disease, and stroke and take pressure off the NHS

Companies have until January 2028 to remove sugar or face the new charge which will add £1 billion in health and economic benefits.

The changes will apply the charge to pre-packaged milk-based and milk-alternative drinks with added sugar like supermarket milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks, and ready-to-drink coffees.

Many of these products can contain as much added sugar as fizzy drinks, where much of that sugar is added separately to the milk, but were previously exempt from the levy, which so far has seen the average sugar content of drinks in scope fall almost 50% since it was introduced. Plain, unsweetened milk and milk-alternative drinks are not and will not be included.

You can read the Government’s official press release here

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