25th November 2025
Responding to the Secretary of State’s announcement that a new ‘milkshake tax’ will be introduced in the upcoming budget, Sarah Woolnough, Chief Executive of The King’s Fund, said:
‘Revising the Soft Drinks Industry Levy to include milk-based and milk-substitute drinks in response to the growing evidence of the health benefits of the levy is not only common sense but also a quick win for government and, most importantly, for children and young people. Today, nearly 1 in 4 children are overweight or obese by the time they start primary school, and obesity rates are nearly twice as high among the poorest children. Sugary drinks such as milkshakes contribute to tooth decay, which is the leading cause of admission to A&E for children aged five and over. These are not just statistics; they represent the lives of young people shaped by entirely preventable ill health.
‘It is well known that when government sets clear statutory rules, industry responds fast. Far from limiting freedom for individuals, smart regulations like the milkshake tax expands it, enabling people to live more of their lives in good health. The original levy introduced in 2018 drove a 46% reduction in sugar content in affected drinks – exactly the kind of decisive action needed to turn the tide on what risks becoming a generation of children and young people growing up in poorer health than their parents.
‘But these measures must be part of a broader recipe for a healthier population. Government must mix the right ingredients by empowering individuals to make healthier decisions while implementing bolder regulations to reshape the food environment. That recipe includes strengthening existing regulations on junk food advertising. It also involves reducing salt, sugar and fat in processed foods, and following through with mandatory calorie reduction targets for the food industry.*
‘The NHS is only one thread in the wider tapestry of promoting good health, so it is encouraging to hear reports that the Chancellor plans to scrap the two-child benefit cap. Research by The King’s Fund shows that child poverty is one of the most powerful predictors of poor health, and lifting this cap will help families afford healthier food.
‘All eyes are on the upcoming Child Poverty Strategy, which must include bold, cross-government measures to tackle widening health inequalities among children. The government’s existing commitment to expand free school meals is a powerful start but much more is needed to ensure every child has the chance to live a happy, healthy life.’