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A Spoonful of Sugar Helps the Taxes Go Up: A-level Business In the News

Mike Mills

27th November 2025

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Taxation on sugar extended from fizzy drinks to include pre-packaged milkshakes and coffees from 2028

Health Secretary, Wes Streeting, announced the threshold will drop from 5g to 4.5g of sugar per 100ml, potentially affecting popular brands across the dairy drinks sector.

The original levy, introduced in 2018, was designed to encourage manufacturers to alter products to include less sugar.

The tax applies only to pre-packaged items, not drinks purchased directly from cafes. Only added sugars count toward the threshold.

A new "lactose allowance" will allow for naturally occurring milk sugars. This recognises the nutritional benefits of dairy, including calcium and protein. Plant-based alternatives will face similar treatment.

The policy aims to address childhood obesity, which the government argues creates long-term health issues and strains NHS resources.

But the expansion may not necessarily increase consumer prices if manufacturers choose to absorb costs or reduce sugar content.

Evidence suggests the original tax saw sugar levels in fizzy drinks falling by nearly half.

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Mike Mills

Mike is an experienced Head of Department, teacher and A-level Business examiner. Mike is also a popular presenter on tutor2u CPD courses and student workshops.